The five areas are:
- Car dealers
- Home furnishings
- Full-service restaurants
No surprises here. Various media have been reporting on the woes of these categories for months now, if not a year. Loss of disposable income has hurt apparel, electronics and restaurants, while big ticket purchases like cars are being postponed. No one needs to tell Americans, whose homes have lost value that now’s not the time to buy things for your house.
THE REAL WORLD RETAILING TAKEAWAY
Retailers are continuing to push the value proposition, causing consumers to hold off on buying until there are deals that warrant making the purchases.
This deep discounting hurts entrepreneurial retailers like you, as consumers don’t discriminate and say, “I’m willing to pay full price at this retailer but not this one.” The mindset still exists that if there isn’t a deal, then it isn’t worth buying right now.
While you’re never going to win at the discount game with the big boys, you may want to consider smaller discounts to drive traffic and sales. After all, people are just looking for a deal, not the biggest, best deal.
Even better is to use non-sales incentives to bring in traffic. Events, gifts, demos, clinics all can bring in traffic without hurting your bottom line.
How are you beating the deep-discounting that national retailers are offering?
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