Post-Christmas promotions: starting before Christmas

By: trademagazin Date: 2007. 01. 31. 08:00

Retailers are trying to compensate for the “low season” following the end of year shopping craze with various promotions. Discount sales play a major part in the success of these campaigns, with some beginning even before Christmas. Consumer interest is usually moderate after the shopping frenzy of the Christmas season is over. This is why more effort is needed to arouse consumer interest in this period. Two methods are used in Auchan stores: discount sales of the remaining stocks of seasonal products and a promotion called “white weeks”, with a leaflet edition focusing on household textiles, like bedclothes, carpets, and other items. The traditional, beginning of the year Auchan meat fair with high quality Hungarian products is also held at the same time as White Weeks. Offering seasonal products at discounted prices does not necessarily begin after the peak of the season. Such campaigns often start before the peak of the season, as the objective is to get rid of stocks and units are free to determine the best dates starting such campaigns. The big post-Christmas campaigns of Tesco stores started on the 5. January. Stocks of toys were offered at a 50 per cent discount, while clothing items were also sold at prices reduced by 30-50-70 per cent. Prices of consumer electronics were only reduced by 10-20 per cent, since this was the maximum feasible reduction. The private label fondants and Christmas accessories of the store were also discounted to a quarter of their original price even a week before Christmas, SPAR also used discount sales to get rid of Cristmas stocks, with campaigns being accompanied by virtual packages and cross merchandising. Such promotions last for two weeks, while loyalty campaigns and prize games can be maintained for several months. SPAR is continuing it “food expert” campaign this year, with its private label “Natur Pur” product line receiving special attention. COOP is using a somewhat different system of campaigns from that used by international chains. Nation-wide campaigns take part in the first two weeks of each month, while regional campaigns are held in the second half of each month. COOP has taken the idea of “two for one” even further: they used a “four for the price of three” concept with their private labels.

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