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In a recent revelation, fashion retailers have realised that the much famed End Of Season Sales do not garner the same business any more as customers prefer to shop from fresh stock. The rethink of strategy has come in the wake of the conclusion that a longer duration of sale doesn’t necessarily translate into higher sales.
“From this season onwards, our understanding is that we need to change track. Customers come and shop for new ranges and services, not prices,” said Shoppers Stop’s managing director Govind Shrikhande.
Clearing inventory to make room for new stock is the main reason retailers hold sales rather than to boost earnings. Revenue from End Of Season Sales accounts for about 50 per cent on average of a retailer’s total business during the quarter that a sale falls in; a major chunk of that comes in the first week of the sale.
The philosophy going ahead will be starting and ending sales quickly to focus on new fashion instead, according to the retail chain