It’s the sales period in France.
Funny how people are queuing in front of shops for hours, just to be amongst the first to get goods with 50% rebate or more. Looking desperately through shop windows, to see if their stuff is still there, at the good price.
Do not forget that most consumers procrastinate their purchases, waiting for 'Les Soldes'. As a consequence, shops do, on average, 30% of their revenue (and their margins) during this short period. Some even more.
TV, radios, newspapers are now celebrating this shopping ceremony by interviewing consumers. What worries me with the given interviews, is the repeating story:
- “We wait all year for this period”
- “I only buy during sales period”
- "I have postponed some purchases"
- “I’m doing 50% of my yearly turnover now
- …
It is a now a strong tendency in France (and in the rest of the world) to postpone purchases until the sales. Shop keepers admit that consumers no longer spend massively out of sales period (except some products, like groceries, food, luxury goods…).
There is now in consumers’ mind a general agreement on acceptable price levels: the right price. Or rather: what's the point of buying at expensive price the rest of the year, when I can but at the right price (the only acceptable price during the sales).
Except for luxury goods or newly launched high-tech goods (PS3 for instance), in retail, the acceptable price is the price paid during the sales (or the price found the rest of year on most Web sites – that propose goods at reduced prices 364 days a year).
Two consequences:
- a purchase slowdown the rest of the year
- retailers that have to put in place new techniques to sell goods (events, sales before the sales..)
Is there a third way?
Maybe. Let's try this. What’s the point of having a rock solid shop 12 months a year, with ship windows full of goods the rest of the year, if consumers only shop 2 or 3 months a year?
Is it only because we human need to touch and see products ? Because browsing the Web is not enough for us to have the experience of the product? Because it allows accompanies to keep touch with its consumers and prospects ?
If most consumers truly do not spend out of sales period, we may see soon real evolutions in terms of investments in retailing. Couldn’t retailers use spare space differently? To transform shopping center depending on consumers' behaviour?
Some ideas: come companies may rent places in city centers during sales period to get access to consumers and leave the rest of the year. Other may lower/increase their shopping surface depending on the year period. It could be an interesting opportunity for art events, customer inquiries, community meetings …whatever.
There are multiple answers. But ‘real’ shopping centers may change very very soon.
