Archive for November 25, 2011

Holiday Sales at a Cost

Cheap turkeys, door busters, lowest prices of the year… all of these ploys are working better than ever in this “deal” driven economy. But the question remains, when the smoke clears from the promotions, is there any residual, lasting patronage that justifies these deep margin investments? I believe the key to getting promotion minded shoppers to come back when the deals cool off is nested in solid category by category price strategies. While a consumer is picking up deals, if shoppers notice that prices on in their favorite categories are competitive, even if not on deal, there is a strong likelihood of them including the retailer in their consideration set for routine shopping. Using promotions as an opportunity to introduce shoppers to non-promoted “value-pricing” is an opportunity more should embrace!