Parents and their wards are preparing for the new school term. For retailers, these are supposed to be days of bigger sales. But things are different. Traders are lamenting that even with the bigger discounts they are offering, sales are not encouraging. What could be responsible? TONIA ‘DIYAN asks.
Detailers may be in for a disappointing season this year as they experience weak sales in back-to-school items. With back-to-school shopping in full swing, retailers are expecting a bumper in sales, but to the shopper, the reverse is the case.
Back-to -school is one of the biggest shopping periods of the year and retailers usually begin promotional sales early. Over time, it has also become, perhaps, the most prolonged shopping period of the year, with families buying school items from practically two weeks to resumption until after classes start.
According to a survey, more than a quarter of parents plan to finish their shopping after the start of the new term, probably because of the economic situation of the country.
“We prepare for back-to-school sales every term, but this term is different from the last one. We have introduced ridiculous discounts on all Back-to-school items, but to our greatest surprise, turnout from parents and their ward to purchase these items is very low,” Martha Edward, a retailer at the Back- to- School Section of the Aswani Market, Lagos, said. She said customers were shopping more frequently but they are making smaller purchases over a longer period, rather than doing one huge buy. Some of them would rather window shop, sight-see, compare prices from one stall to the other and walk away.
She added that the market witnessed a large number of visitors early in the week when it was opened for business. Edward said: “There is no doubt that the market was full to its brim on Tuesday as parents who were here with their wards struggled to find their ways to the Back-to- school section of the market. Majority of them complained that the economy is in tough shape and that they have spent a lot stocking up food during the election period and for Easter. I think this term, we have lost Back-to-school bumper sale to preparations for the Easter celebration as well as the elections.”
The Nation Shopping observed that retailers are giving away cheap prices on Back-to-school items this season. They are also giving out price-matching guarantees to customers in an effort to stay relevant and competitive.
Some retailers are offering two times less the original prices of items such as rulers, glue, paper, coloured pencils, erasers, crayons, ballpoint pens and markers. There are some other retailers who are known for their steep Back-to-school promo, they attested to the fact that they have obviously started selling early and would make sure they stay relevant throughout the season.
Also, owners of bookshops in Mushin, Lagos and its environment said they are responding to competition so they don’t lose out on sales. They are hoping parents and guardians will do some impulse buys this term. They believe that when a retailer needs to attract shoppers with something other than product. It is important to use price and time.
Retailers are busy serving the needs of millions of shoppers who seem to hold all the cards when it comes to getting cheap merchandise. These retailers prefer to mark down items (place items on discounts) to help them clear stock. And they’re doing it out of a need to keep shoppers with hundreds of other options interested, especially during crucial buying seasons like Back-to-school.
A shopping list at the beginning of a new term is short because parents would want to cut costs; therefore, they would fall back on old items that can be used again to enable them meet other important needs, such as school fees.
It is not news that school items are sold at discounted rates this season. The news is that consumers are not responding to these discounts as expected.
Some of them complain that they have spent their money celebrating Easter and stocking food stuffs during the election; as such, they do not have enough money to spend on school items. They added that it is not necessary to start a new term with new items; old items could be used if they look good.
Parents are, however, being judicious on school supplies as they purchase fewer new school outfits. But because their kids are outgrowing clothing, they may have to cave in to the trend.
On the other hand, while sales remain unstable, school sales have helped push Internet retail revenue up slightly. Secondary school pupils in particular are very savvy when it comes to shopping via the Web. It seems they were born with computers in their hands, they know how to use the Internet to their advantage, so they’re surfing the Web to get the best prices and the best deals.
The third term of every academic year is loaded as that is when promotion exams are written as well as other entrance examiniations.
The holiday season is the biggest time of the year for retailers.
These sales can account for as much as 40 percent of a retailer’s yearly sales. Historically, nearly one-fifth of the industry’s yearly sales come from holiday months, making the holiday season the top consumer-spending event of the year, according to the National Retail Federation (NRF).
‘’When it is time for school sales, we usually look ahead to another season holiday sales,’’ says Eniola Owolabi, a Bookshop owner at Onipan-Lagos.
According to her, retailers are looking at merchandise as sales continue to get weak and markdowns are higher than normal.
She also said most retailers have decided to cut stocks for some time, adding that it might reflect in sales this month.