How to sell goods to shoppers primed for the rush of a bargain
As SA catches up with the promotions trend, retailers may be setting a dangerous precedent, writes Diana Springer
Because of retail promotions — an area in which SA is catching up to the US and Europe — there’s a growing sentiment among value-conscious consumers that there is no need to buy full-price merchandise because it will be on sale next week. Retailers are "training" shoppers, creating an apparent consumer monster. But is there a happy middle ground? Recession or no recession, South African consumers love to shop. SA has the sixth-highest number of malls in the world. And one in three South Africans – 11.5-million in total – agrees with the statement, "shopping makes me feel that my life is worthwhile" (AMPS, 2014). Granted, big-ticket items such as homes, cars and furniture aren’t selling as quickly or as much as they once were, but many retailers are still performing well. "Clicks’ results are excellent," says Mike Schüssler of economists.co.za. "Cosmetics are going through the roof." Woolworths’s clothing and general merchandise sales increased 8.2% over the 52 weeks ending June 2016...
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