It is well known: on the first day of sales, consumers flock to stores to hunt for bargains. Unfortunately, the following days do not look the same for retailers. Despite an encouraging week (sales started on January 6 until February 9), the report remains mixed. According to the Chamber of Commerce and Industry of Nice Cรดte d’Azur, 69% of retailers say they are dissatisfied. Frรฉdรฉric Bensaid, Vice-president of the Avenue Jean Mรฉdecin Merchants Association, notes a 3% drop in sales compared to last year. A negative point accompanied by a positive note: “we sold a lot of new collections. So overall we are more satisfied.” He also reminds that “Avenue Jean Mรฉdecin is the commercial sector par excellence.” The majority of stores are not in this case: discounts quickly reaching 50% off or more have not convinced the people of Nice.
Who is to blame?
The economic crisis is of course pointed out. It has forced buyers, concerned about rising unemployment and their purchasing power, to lower their spending. Another cause: according to Frรฉdรฉric Bensaid, “the issue of constant sales, promotions take away the impact of the sales. It discredits the store and the products.” The law on the modernization of the economy (LME), which came into force on August 6, 2008, modified the sales regulations. Since January 1, 2009, each period of “fixed” sales has been shortened by a week. Now, you can find bargains for five weeks in winter and five weeks in summer. This new regulation introduces an additional sales period: the “floating” sales. Retailers have the option to choose two consecutive or non-consecutive weeks to display promotions. The objective: boost the economy.
Aren’t we missing mentioning the Internet factor? With this tool, there are no weather constraints. According to the Federation of e-commerce and distance selling (Fevad), there was a 19% increase in sales this winter compared to last year on the Internet.
Sunday opening, an aberration
Since August 11, 2009, the French have the option to shop on Sundays. The mayor of the city concerned can request the opening of certain stores five Sundays a year. The employee then earns at least double the salary of a weekday and receives compensatory rest. According to the CCI, 81% of retailers did not open on Sundays during the sales. Previous experiments with Sunday opening were not conclusive. Frรฉdรฉric Bensaid opened his store “Teddy Smith” on the first Sunday of the sales but does not declare himself in favor of working that day nonetheless: “a closing day is something indispensable to me.” Generally, he disagrees with the law but still believes that “five Sundays of opening is good and it might need to go up to eight during periods of high demand.” He also stands on the consumer’s side: “people do not have endless purchasing power.”
As last year, the CCI wants the summer sales to start on the first Wednesday of July to account for seasonality and tourism in the department.
