As we further progress in these “New Normal” times of the ‘Kondratieff’ Super-Wave, the consumer will eventually become resistant to the Retailers ubiquitous ‘Loss Leader Strategy’ (LLS) as a means by which to get consumers in the door and then hope that they can be persuaded to buy what they never intended to buy in the first place, at retail full prices, thus boosting the top and the bottom lines.
We believe that this Christmas Season may very well prove to be the tipping point for the LLS’s demise. We will ALL be watching closely the overall retail numbers. If our belief comes true, then the bottom line for retailers utilizing this strategy will suffer – perhaps horrifically.
Stay tuned, for we believe that it is highly probable that the consumer’s newly awakened sales resistance (and their commensurate adoption of the behavior of a CFSS hugely facilitated by social media) will become apparent this Christmas Season.
Stay Tuned!
Black Friday Sales ’About Same’ as 2010
Bloomberg; By Matt Townsend and Ashley Lutz - Nov 25, 2011 8:31 AM ET
Advertisements for Black Friday specials from various retailers. Black Friday arrived with consumer sentiment at levels previously reached during recessions, as a record share of households said this is a bad time to spend, according to the Bloomberg Consumer Comfort Index. . .
From Mall of America in Bloomington, Minnesota, to The Galleria in Houston, retailers unleashed a blizzard of deals as Black Friday -- the biggest shopping day of the year -- got off to its earliest start ever. The discounting has been more widespread than last year as retailers tried to woo shoppers spooked by global economic uncertainty and stagnant job growth. . . .
. . according to the Bloomberg Consumer Comfort Index. The measure has reached minus 50 or less in nine of the past 10 weeks, an unprecedented performance in its 26-year history.
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