Like sporting events, there doesn’t seem to be a break between sales and they seem to last longer with higher percentages. Consumers are rejoicing but are high-priced retailers sending the wrong message?
The proof that constant sales are not good for business is how black friday turned into a week (or two) ordeal with cyberweek following as stores extended cybermonday deals. Stores want to attract more consumers but sales can keep in the red and the economy suffers for it.
Today’s customers come into the store and ask two questions,” said Cocke, retail consultant, “What’s new and what’s on sale?”
The best strategy may be the incentive. PINK by victoria’s secret offers suprise rewards cards and gifts with purchase which packs their stores daily. Of course, sales drives traffic but it also makes consumers wait for items to go on sale.
The best thing for the economy, go back to seasonal sales and offer incentives throughout the year. Your customers will be saved “sale-shock” and it would save your profit margins.
Consumers be weary of deep discounts because it usually means products have sat on the shelves too long or have a defect (especially true with electronics).