Too Many Store Sales Can Backfire - Brief Article - Statistical Data Included

USA Today (Society for the Advancement of Education), Nov, 2000

Consumers are confused and dis-illusioned with the overwhelming number of sales at retail stores, according to a survey by Shaheen Borna, professor of marketing, Ball State University, Muncie, Ind. Most shoppers do not have a clear idea about merchandise on discount or believe the savings are substantial.

"It is safe to say that retailers have cried wolf too often," he maintains. "Sales events are a very attractive way of getting consumers in the door. However, retailers have invented a sales event for every holiday and non-holiday to attract shoppers, leaving consumers unsure what is really on sale. With few exceptions, sales events do not conjure up a clear mental image in consumers' minds."

The survey polled 286 midwestern consumers who were asked to rank their awareness of a particular sale when they shopped and the discount rates they expected for 30 shopping events. About half said they went to 10 sales events, with Christmas and grand opening sales attracting more than 80% of the respondents. "Boss-is-on-vacation" and St. Patrick's Day had the lowest participation rates (five and seven percent, respectively). Respondents indicated that they expected to receive between 20 and 24% discounts in 18 of the sales, with business distress and grand openings having the highest expectations of price cuts. Shoppers thought they would find the lowest discounts during Super Bowl and Groundhog Day's sales (15 and eight percent, respectively).

To retain and attract shoppers, Borna advises that retailers:

* Avoid inventing sales events.

* Offer items congruent with the public image of the event. For example, sell gardening tools during a spring sale.

* Avoid ambiguous events such as "boss-is-on-vacation" or Presidents' Day sales because they have little or no meaning to shoppers.

* Base discounts on research about shoppers' expectations in the area.