So, as of writing this, just about every brand name department store running the spectrum from Wal-Mart to Macy's is running ridiculous sales to try to recover the 2% decline across November and December. By the way, 2%= 9 billion dollars when you figure that most outlets generate at least 50% of their yearly earnings during the holidays.
What are we seeing as a result? 60% off, 70% off, and even 80% off. Retailers are scrambling to recover lost revenue by giving consumers insane discounts to promote purchases at their location. But is it helping? The answer is no. With such extreme discounts to entice the shopper's wallet, the profit margin is slowly dipping into the red.
The setback? When big mainstay (although with borders stores closing across the nation, that term feels hypocritical) start desperately slashing prices, the mom and pops shops as well as high-end designer stores hurt even more. Places like these can't get the bulk discount in purchasing like operations such as Best Buy or Sears and when trying to match bargains to drive sales, it cripples small-business.
The suggested fix? Offer tax-free shopping days next year to allow retailers to recover lost profits and have the Federal government pay the state tax bill. How that's supposed to work in a state that runs out of money in February, *Cough*CALIFORNIA*Cough* is beyond me, but setting up these dates will not increase business, it will just augment customers to schedule their shopping around these dates.
One other piece of non-sense related to retail. I know that in a multi-cultural nation like the US'A people believe in different things. But that doesn't mean you can't wish your own personal holiday cheer. If you believe in Christmas, say what you will. Hanukkah? Go for it. Don't try to sterilize the holiday by saying "Happy Holidays," and don't get pissed when someone didn't realize people actually celebrate Kwanzaa.
Happy New Year all and let's bring on this recession already.
P.S. Hope everyone got what they wanted for Christmas, you magnificent materialistic people. :)
Subscribe to:
Post Comments (Atom)
1 comment:
Good insights regarding "mainstays" vs. mom & pops and high end retailers. And, interesting suggestion regarding tax-free shopping, though if the feds cover sales tax, won't there just be shortfalls in the government coffers, resulting in reduced services or increased taxes at a later date?
---
www.singlespeedrevolution.com
Ride One or Ride None!
Post a Comment