Retailers Raise Concerns Over Shifting Consumer Behavior During November Sales

November sales, like White Friday, are leading to increased short-term consumer spending but raising concerns about the long-term effects on retail behavior and business profitability. Retailers are experiencing a culture of reliance on discounts, which disrupts traditional sales cycles and poses financial challenges, particularly for smaller businesses.

As November sales events, including White Friday, flourish in the Kingdom’s retail market, retailers are increasingly voicing their concerns regarding the long-term implications of these discount-driven shopping periods. While short-term sales boosts are evident, stakeholders note that such events foster a burgeoning “sales culture” that cultivates consumer habits heavily dependent on discounts, subsequently disrupting standard retail operations throughout the year. Eyad Samara, a furniture store employee in Amman, emphasized the negative cyclical effects of these promotions, stating, “When sales increase in November due to these discounts, we usually experience a decline afterwards, sometimes lasting for a month or more.” Moreover, marketing specialist Baraa Awad reported an intriguing shift in consumer behavior, highlighting a 30 percent increase in online sales since early November. In contrast, fashion retailer Mohammad Marwan pointed out troubling trends, stating that while his store has experienced a sales surge of 40-50 percent, rising operational costs have hindered profitability: “Retailers often sacrifice profitability just to attract customers. Over time, this can lead to financial instability, especially for smaller businesses in the country.” The consensus among these retailers indicates that although November sales stimulate immediate consumer spending, they simultaneously reveal significant economic vulnerabilities related to excessive reliance on discount sales, ultimately posing risks to sustained retail health.

The retail environment in the Kingdom is undergoing notable changes, largely influenced by the popularity and frequency of discount events such as November sales, particularly White Friday. These events attract significant consumer attention and spending, leading to a temporary surge in retail income. However, the ongoing reliance on such sales practices raises questions regarding their impact on retail sustainability and consumer habits. Retailers are expressing their apprehensions that while short-term gains can be realized during these promotions, the long-term consequences may destabilize retail profitability and alter consumer behavior in a manner that could disrupt the overall retail cycle throughout the year.

In summary, while November sales events provide a temporary boost in consumer spending and retailer profits, their long-term ramifications may be detrimental to the wider retail sector. The emergence of a discount-dependent culture has the potential to destabilize traditional retail cycles, particularly affecting profitability for smaller retailers. Stakeholders must consider strategies to mitigate dependence on sales events to maintain economic stability in the retail sector.

Original Source: jordantimes.com