Despite the fact that summer is far from gone, many stores have started advertising their end-of-season deals nearly a month in advance, presumably in an effort to stave off the gloom of a slowing economy and the competitive threat posed by online marketplaces. Some stores started their sales as early as the middle of June to drum up customer interest and foot traffic.
End-of-season sales, traditionally held in July and August, have been moving up the calendar in recent years, according to experts, but never before to such an extreme degree. A representative from Lee, a popular clothing company, concurred and offered several valid reasons. Buying new inventory is a major factor in the success of the sale, even more so than the reduced inventory itself. Secondly, today's consumers are savvy enough to know that marked-down clothing is available during sales, so the earlier you go, the more you'll add to their excitement, as stated by the spokesman. The spokesman also noted that if the sale were delayed, customers' finances might have to be split among multiple brands.
Many retailers and shopping centres are going above and beyond the call of duty to attract customers. For instance, retailers like Vero Moda, Jack & Jones, and Only now let customers pay for their products in monthly instalments. The effects of internet merchants offering steep discounts and declaring deals multiple times a year have rippled out to offline stores as well. In response, several retailers are using midseason and holiday specials to attract customers. Before going on sale again last month, for instance, Only advertised a "flat 30% off" for the month of May.
The Lee representative acknowledged that their company was being affected by the continuous sales by e-commerce firms. The representative continued, "We saw that our last sale in January had a poor start because e-commerce companies like Flipkart were running discount promotions around their applications, but it picked up gradually."
When it comes to making sales, it's more of a "follow the herd" mentality. When a select number of brands initiate a discount, the rest of the market reacts swiftly so as not to be left behind. On the other side, shopping centres are doing what they can to pique shoppers' interest.
Nothing attracts a consumer's attention like the announcement of a bargain. Seasonal sales are an excellent method to entice clients with discounts that may be offered only once a year, and these sales are known to create a lot of traffic on ecommerce platforms.
Consider the last time you wanted to buy something but couldn't justify paying full price for it. What if you were offered the same thing at a significant discount, say 40% to 50% off? Wouldn't you get out of your chair and rush to get your wallet or credit card? Sales are a call to all such clients who sit on the sidelines waiting for a price drop.
In the last three years e-commerce enterprises have had the single most impact on offline retailers, and there are obvious evidence of a dent in clothes sales."
Since 2020 and 2021, retailers have seen a steady decline in same-store sales, prompting Business Standard to write that many have turned to steep price cuts and other promotional strategies to win back clients. When the festival season begins in October, sales are predicted to increase.
