Has end of season sale lost its sheen?
Has end of season sale lost its sheen?

Summer may be yet to over but most of the retailers have announced their end-of-season sales (eoss)  almost a month back which is almost during the middle of the season. The reason could be to compete with e-commerce portals or cover up the losses.  Moreover, eoss has no longer remained a single sale event to the liquidator inventory, these days retailers have such events throughout the year such as women’s day sale, father’s day sale , etc. And, this year we also saw Pre GST sale which was on till recent. So the question arises what is the significant of conducting eoss when retailer have such events throughout the year. Let’s try to understand..

Effect on Top lines

The obvious question came in mind does eoss also helps in achieving better top lines other than footfall and revenue generation. Speaking on same, Jacqueline Kapur Co-founder and president of Ayesha accessories, said, “EOSS definitely helps increasing the total sale, since the footfalls in the malls increases massively. The total profits however obviously don’t increase that much.”

  Ayesha accessories is offering flat 70% on products the company has limited stock of, Flat 50% on the current seasons products and flat 20% on the latest new arrivals buy 2 get 1 free on our men and kids range. Also, the company is planning to reach 100 to 120 points of sales by the end of this financial year. The company is also a exclusive accessory partner of Reliance Project Eve and have started with big SISs in the newly launched Centrals.

“Sale events such EOSS is a breakthrough for retailers to not only clear old season stock and welcome afresh the new collection but it is also a great tool for new customer acquisition. With great deals and discounts pouring in, new customers tend to shop from us and the existing regular customers get a chance to enjoy a little more of Da Milano,” said Sahil Malik, Managing Director, Da Milano.

Speaking further on same, Jacob John, Deputy Chief Executive, Lifestyle, informed, “Sale is a crucial period for any retailer as we see higher footfalls and sales during this time as the offers are quite attractive for customers to shop even more as compared to the regular period. It significantly contributes towards achieving our topline.” The company is offering flat 50% discount across all leading brands across categories at our stores. Also, the company is planning to add 8 – 10 stores this fiscal year.

“We are Living in a Global Economy and now EOSS is a World phenomenon. Revenues are maintained but Frequent EOSS does lead to Pressure on Bottomline but at the same time It does contribute in the increase in Gross Sales & Better Topline,” said Vineet Chhajer, Director, Vineet’s sarees.

Constant sale offers effect eoss ?

“The constant sales offers to the customers do not get the same attention from the customer as the EOSS does. The excitement of an end of season sale is much more and certainly hasn’t lost its charm to the customer. However it is difficult to sell products on full prices nowadays because of the permanent reduced prices on the E-commerce sites,” said Jacqueline.

“EOSS is Losing it's charm because when Revenue or Monthly targets take a hit, A Retailer ultimately opts for EOSS and sometimes for elongated periods. But, The Competition is Global. It's not only Online but also the friendly neighbourhood mall. So, in a Battle of survival of the fittest gimmicks, PR and marketing often provide the much needed push to stay relevant and within an arms distance of the Targets,” informed Vineet.

“Temporary price cuts are to lure customers and boost sales. But going on frequent offers can tarnish the brand also Consumers become conditioned to buying only during sale season and curbs buying. Also, the premium image of the brand built over the years goes for a toss. Revenue generation and brand image goes parallelly, so there should be a balance maintained,” said Malik.

Speaking on discount slab Mallik informed, “Due to highest tax slab of 28% on leather goods, we anticipate increase in price of leather goods will impact the sales and will lower the buying for some time and effect the sales.”

Speaking on same Harsh Shah, Co – founder, Fynd said,” The Indian consumers are price conscious and discounts have the ability to instantly draw customers into the store. Tapping this tendency, online players are now making the sale season into a ubiquitous event. With flash sales, quick discounts, lightening deals, e-commerce players are propelling customers to shift focus online and avail a myriad of exciting offers throughout the year.

E-commerce eating from eoss pie

Speaking on same Shah quoted that today, with e-commerce players announcing season sale frequently and plying on deep discounts and predatory pricing, the effectiveness of EOSS has decreased, thus eroding brand loyalty in the process.  Most of the times, the e-commerce players are a harried lot due to price wars across platforms; they plan the sale in a haphazard manner and continue to display the same old products sans (without) discounts post the sale period, often leaving customers disgruntled and annoyed. This process isn’t beneficial for any of the stakeholders; the market,the brands or the shopping enthusiast.

“Major brands offline still maintain their cycle of selling their goods on fewer discounts; i.e. an average of 20% in the first five months of a season and then 50-60% in the last month of the season, which is generally termed as EOSS. An average consumer considers EOSS as an opportunity to indulge in luxury brands or brands that are otherwise considered unattainable. The idea of a brand here is to convert the sales into a healthy customer-brand relationship, but the game has been flipped by e-commerce players as they roll out hefty discounts every other week or month. E-commerce players are turning out to be fiercely competitive and are pulling out all the stops to attract more customers to their platform. Here, brands are unable to control the online sales because of the inventory model of e-commerce players,” Shah said.

Clearly, the concept of eoss seems to be dilated due to year round raining discounts. However, retailers seem to enjoy the event as eoss period definitely helps in increasing footfall of the store and some of it definitely convert into sale. Moreover, eoss mark the arrival of new stock.


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