Sales exist for a good reason!
While clearing out last season’s left over stock frees up warehouse and display space and provides cash to reinvest in your business, the main reason you, as a retailer, sacrifice short term margins is in the hope that deep discounts will tempt good customers into your stores to begin a long term and profitable relationship. Of course everyone knows that sales also attract price sensitive bargain hunters with little notion of brand loyalty, but as long as there are enough good customers to compensate for the bad, sales make economic sense.
But that was how it used to be. Today we seem to have non-stop sales as imports such as Black Friday, Cyber Monday, and Amazon Prime Day have joined the traditional January and end of season sales. And who knows if the Chinese invention of Singleton’s Day will be the next excuse to discount to arrive on our shores! As well as more sales, we have also seen a frenzy of discounting as retailers compete to give away more and more margin with headline grabbing price reductions to cut through the noise from all the competing store sales.
What makes this