End of season sales not a hit with consumers

This year, the summer sales have failed to attract consumers even when brands have postponed their annual sales to augment business; consumers have been quite subdued in the past months.

According to the Managing Director of a chain of lifestyle departmental stores, overall, the zeal with which people waited for sales had dipped compared to about five years ago when they were looked forward to with enthusiasm. He added that the number of sales in the past four years have gone up on both platforms—the brick-and-mortar as well as online players. He says that discounts are offered on online platforms through the year as well. Now, people are no longer excited to shop during the sale season.  

In fact, departmental stores have been running offers such as buy one get one free and even cash back on some credit cards as well as gift vouchers. Some stores even offer about 50 percent discounts and also 50 per cent in cash back. Brands, not to be outdone, too have discounts up to 50 per cent and cash back on certain credit cards. Another brand, apart from offering 50 per cent discount was also giving 500 redeemable points for more than INR 5000 of shopping. While another brand was offering up to 70 per cent discounts.

Though malls are overflowing with people, merely a high rate of footfall does not translate into high sales, according to retailers. Overall, consumers are not spending and sales have dipped by about 15 to 20 per cent compared to last year though brands have advanced their end of season sales by two weeks. The reason for this has been cited as a high number of sales events by many marketers.      


 

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