Ragtrader magazine will investigate the impact of department store sales on independent boutiques for its June 18, 2010 edition. In the meantime, www.ragtrader.com.au gives you a preview into what buyers had to say on the aggressive sales season.
Mid-year sales with massive discounts can undermine the whole market. It cheapens the value and perception of a brand that has taken many years to build. The knock on effect forces many independent retailers to follow the trend of early sales, it also gives independent retailers less time to sell the labels at an acceptable margin. Are the massive discounts a result of a nervous post GFC environment or down to poor buying decisions? In my experience early sales usually indicate a poor sell through. More focus needs to be put into product knowledge, customer service and merchandising to ensure a reasonable return.
Tanya Stevanovic, Pretty Dog, Sydney.
We have two sales a year. The last one we had was in early June. We try not to have too many sales - our stock is limited and precious. There is no room for over production in the boutique environment we operate in. The slash and burn approach to retail is something I dread - it's a waste of fabric, time and the world's resources. We have sales that clear samples and a motley crue of leftover pieces - rarely is there bulk numbers of these pieces because we specialise in limited production. Discounting as a regular sales strategy doesn't suit my business or interests. We want to see things that are good value at full price. If you're in the city for brilliant Aussie-made garb then hopefully you'll come visit us. If you want a cheap toaster then the department stores are your best bet.
Karen Reischieck, Alice Euphemia, Melbourne.
People trust that they won't see themselves duplicated all over town if they shop with us. This means a lot more work for me as a buyer, but it pays off. I had further refined my buying for winter to covering more of the special/distinctive pieces - this has worked quite well as clients have had enough of the "safe" options and need a reason to buy other than necessity. This has also reaffirmed our destination status especially relevant for all special occasion wear. We also sell shoes and accessories, and clients come for the one- stop-shopping experience. We are putting even more emphasis on customer styling and customer service, making the business even more personalised. This creates a more visible point of difference between us and the department stores and vertical traders in shopping centres who seem to be constantly on sale. They have the margins - we don't!
Karen Rieschieck.
