The Post-Christmas Retail Slump – Linking to “January: No Longer a Retailer’s Nightmare?” by Natalie Shojania

Natalie Shojania: https://blogs.ubc.ca/natalies/

Retailers are resorting to larger price reductions to attract customers at this slower time of year, in order to empty out their winter inventories, but they have not seen a proportionate rise in customers.  

Are consumers passing the shopping mall out of concern for their wallets, or is it that they are unaware of these great deals?  It seems that the promotional efforts are there, but January is the time when people are slowly realizing that they have engaged in perhaps excessive spending over the holidays.  Especially with New Year’s resolutions such as “to save more money”, consumers are holding back on spending for some time, before they lose the novelty of their success and dive into regular shopping trips.  

On the other hand, some shoppers might be oblivious to the fact that savings can be much higher after boxing week, because these people simply steer clear of malls altogether at this time of year.  Store windows are a source of several advertisements for potential savings, but they are not noticed because of the decline in people visiting malls after the holidays.  School reopens, and parents go back to work.  Many consumers go back to their busy lifestyles, leaving less time for them to visit malls for leisure.  

Overall, retailers will benefit from promotional methods besides those in stores.  Fliers and TV commercials are a great way to reach homebodies, who may be tempted to go shopping after glancing at some colourful advertisements.  For commuters, posters on Skytrain platforms, and advertisements in buses can also be quite eye-catching, especially when overcome by the boredom of long commutes.  Once consumers are pulled into stores, there is a better chance that they can be convinced to spend.