Dis­counts strat­egy back­fires

Apparel - - Global Threads -

Hav­ing flagged off the dis­count sea­son early this year, re­tail­ers are now in quite a spot of bother as this strat­egy seems to have back­fired— ac­cus­tomed to dis­counts, ap­parel shop­pers are now not will­ing to spend when prices aren’t slashed. This year, most de­part­men­tal stores such as Cen­tral and Shop­pers Stop had ad­vanced their sale pe­ri­ods by 10-15 days and had started the dis­counts in the first week of Jan­uary it­self. Due to pro­longed dis­counted sales, shop­pers are in­creas­ingly be­com­ing averse to buy­ing full-priced mer­chan­dise, at least, dur­ing the ini­tial days of the non-sale pe­riod, say ex­ec­u­tives at many re­tail stores. As a re­sult, foot­falls and sales have de­clined by a third at many places. A sales as­so­ciate at a Pan­taloons store in a South Mum­bai mall said, “We are see­ing fewer shop­pers af­ter the sale pe­riod. Dur­ing the sale, there was a vir­tual stam­pede at our store.” Also, as the stock is yet to be re­plen­ished, many stores are con­tin­u­ing to sell dis­counted mer­chan­dise, though, with­out the ‘sale’ hoard­ings. At a mall in Thane, a Spykar store ex­ec­u­tive said, “We ended our sale re­cently. How­ever, till fresh stock ar­rives, we are sell­ing dis­counted mer­chan­dise.”

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