12/17/2017

MoneyMatters101.com Home
Shopping

10 Shopping Tips
Black Friday
Christmas Shopping
Cyber Monday
Fickle Consumers
Grocery Shopping
Holiday Shopping
Oniomania
Shopping
Super Saturday

Links

Email Us

MoneyMatters101



 

Christmas Shopping

Christmas shopping is good for retailers and the economy.

Christmas shopping season can either make or break retailers because many companies make anywhere from a half to two thirds of their yearly profits between Thanksgiving and Christmas and on into the first week of the new year. This makes the holiday shopping season a very important part of the overall health of the economy. The amount of profits made during this period may determine whether or not a company is able to survive into the following year.

The holiday shopping season is also good for the job market because many new employment opportunities are created during this time. Seasonal employment help many people put extra money in their pockets which, in turn, is spent and re-circulated back in to the economy. On top of that, if sales are brisk and retailers make enough profits, it could mean full time employment opportunities for some of the workers.

How do retailers get people to spend their money in their establishments? Most retailers, big and small, find it prudent to offer big sales and discounts during the days leading up to Christmas. The closer it gets to Christmas, the more the competition heats up. In order to effectively compete, a retailer has to understand his market and more than that, he or she has to study and understand the competition.

The dollar value of the sales is what entices people to come in and shop. If shoppers don't feel good about the sales prices that are being offered, they will shop elsewhere for better bargains. As a retailer, the best way to sell products is to keep shoppers in the store as long as possible. Once the shopper leaves, so does the opportunity to sell more of your merchandise.

During this time of year, sales on certain merchandise can cause a shopper to buy something that she can't afford at the regular price. The shopper may decide to buy the sales item as a gift for herself or to buy it for someone else. In other words, the deeper the discount, the more opportunity a retailer has to sell that particular product or other products in the store.

  • If you can get a shopper to come into the store to buy something that's on sale, the better the opportunity to sell products that are not on sale. This is important for retailers because the purchase of a non-sale item can make up for the money lost on discounted merchandise.

Most retailers understand one important thing. If they don't give shoppers a reason to walk through their doors in the first place, they will not make money on anything else in the store. A big discount on certain merchandise will attract customers and bring them into the store which will make a positive difference on a retailer's year end profit and loss statement.

For Christmas shoppers, sales and coupons may present opportunities to make purchases of big ticket items such as jewelry, television sets, cars, and other items that suddenly become affordable. The bigger the sales, the more you get for your money. This means more gifts and presents for your children, your spouse, other relatives, friends and/or co-workers.

Book of the Month

Book about investing

Advertise on MoneyMatters101.com

 

Share


Accessibility Policy| Terms Of Use| Privacy Policy| Advertise with Us| Contact Us

Use of this web site constitutes acceptance of the Terms of Use.

We are looking to create more mutually beneficial partnerships. If you are interested in partnering with MoneyMatters101.com, send us your proposal.

MoneyMatters101.com™

Link to MoneyMatters101.com