After sales, will shoppers pay full price again?
New York — Shoppers are getting used to those 75 percent off sale signs, and that’s bad news for merchants who worry they will also have to quickly slash prices on spring goods to attract customers.
Anxieties about how rampant discounts have affected shoppers’ psyches and stores’ profits are running high ahead of expected dismal December sales figures on Thursday. The holiday season is anticipated to be the worst in decades.
Already, retailers including Bebe Stores Inc. and J.Crew Group Inc. are cutting prices on selected spring styles to lure sale-savvy shoppers.
“It is a vicious cycle that no one wants to continue,” said Gilbert Harrison, chairman of Financo Inc., an investment banking firm specializing in retailing. The discounts will be a key topic at Financo’s annual dinner on Monday for retail chief executives.
In addition, retailers expect competition from a rise in liquidation sales _ the fallout from the horrible holiday period.
Merchants struggling to clear out mounds of deeply discounted coats and sweaters are wondering how they are going to get nervous shoppers to splurge on new spring products.
