Independent traders deplore the constraint of sales
While the sales began on June 22, the union of self-employed and VSEs (SDI) publishes a survey on how its member merchants are considering this period of discounts today.
First observation?
For 60% of respondents, the summer sales do not generate high expectations from their customers.
In addition, only 35% of independent retailers surveyed believe that ongoing promotions are a new way to make sales, not just to sell inventory. For the SDI, "while some still see it as a way to expand their customer base, most believe that the sales have become the business of large retailers and e-commerce as one of the many promotional periods that punctuate their activities, without the consumers ultimately knowing the real selling value of the products".
This season, the independents will mainly start their markdowns at -20% (for 31% of respondents) and -30% (for 38%). Merchants also offering private upstream sales (i.e. 20% of respondents), are 57% to consider this practice as financially more favorable than sales.
While the discounts reduce the margin of the shops, the need for cash is becoming a crucial subject, while half of the respondents have taken out a loan since the crisis. 36% of respondents admit that they do not have enough cash to order their next collection.
In addition, supply difficulties complicate the situation: 71% of respondents have experienced postponed or partial deliveries this year. "Between delivery delays and sales dates set far too early in the season, the time it takes for products to be put on sale 'at the price' and therefore the ability of traders to generate a decent margin is reduced to the bare minimum", observes the union, for whom the start of the sales on June 22 is "a commercial and calendar aberration". The DSI judges that the summer sales should only start at the end of the season, i.e. mid-August at the earliest.
These considerations are in line with the request for flexibility made by the National Clothing Federation (FNH), which wants traders to be able to set their sales dates themselves, depending on the territories and economic situations.