Ann Williams
Why do department stores have huge sales after
Thanksgiving and Christmas?
Every year, after both the Thanksgiving and Christmas holidays in the United States, each department store has a huge sale. Have you ever wondered why this is so? Or how the stores can keep their profit by allowing clothes, shoes, and accessories to be discounted at up to 50 or even 75% off? In America, it is a known fact that people enjoy sales. The stores know that people will be willing to buy more at a reduced cost, but how does this affect the store’s profit? How can they allow for such great discounts? Retailers know that these huge sales will influence customers to shop at their stores and therefore are willing to reduce their prices. In addition, many department stores have sales because they fear competition from others.
One possibility for why the stores have huge sales is because they are afraid people will buy online instead. In today’s society, more and more people find it much easier to shop in the comfort of their own home rather than having to wait in long lines at a department store, especially during the Holiday season. Often times, department stores host in-store sales only. Having in-store sales is an incentive for people to come to their stores instead of buying online.
Department stores know that people are more concerned with the opportunity cost of the product than the actual cost of the product. In the United States, some people are lazy and do not feel like getting into their cars and driving to the mall when they can simply buy the items online. This is especially true with the high gas prices that the United States has faced lately, making our society one in which people are willing to spend more on shipping and handling if it means not having to waste gas. Some would prefer to spend more money buying online than wasting their time waiting in a line at the stores. Others prefer going to the stores to avoid shipping and handling costs, but stores may be afraid that not all people will choose this route. During the Christmas season, more people are adapt to spend a lot of money and are more willing to wait in lines to save money with a bargain. Department stores know that every other store will be having a sale, so in order to compete or earn a profit they too must have a sale as well.
It is also known that department store sales have fallen due to other options of shopping. Ebay and Amazon serve as huge competition to department stores. Customers can find better bargains for the same products and they do not even have to leave their home to buy them. Amazon even has the same shipping price for any product which makes it easy for customers. Most of the time, Ebay and Amazon offer a better deal than a department store. If a department store offers sales, some Ebay and Amazon customers may be willing to shop in the stores instead of online.
According to an article from the Milwaukee Journal Sentinel, department stores are doing more to get customers to come in their stores. One thing the article said is that “more retailers are expected to use in-store kiosks that will allow customers who can’t find their size or desired color in the store to order online instead” (Hajewski). Having in-store kiosks eliminates the possibility of customers shopping online or at another store if they can’t find what they want there. Only time can tell the future of the success of the American department store. However, it is certain that department stores will do their best to ensure that in a technology- dependant age such as today they are staying competitive.
Works Cited
Hajewski, Doris. "Holiday retail sales may not be so jolly." Milwaukee Journal Sentinel
[Milwaukee ] 10 Nov. 2007. Milwaukee Journal Sentinel. 16 Nov. 2007
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