Summer sales, the bitter observation of 2021

Every year, the summer sales are a crucial moment for French traders. This is a pivotal period during which they sell a large part of their stock before launching a new collection. Beyond clothing, sales now concern many sectors of activity. But since 2020, the pandemic has changed the cards, and impacted this usually very prolific period for businesses. While the balances are over, the latter draw a first observation, a report of their balances. Overall, the success has not been there, still showing that the virus is playing on the results. A very bitter observation for businesses that were waiting for only one thing: to relaunch, and revive their activity with many sales.

Summer sales, more attractive for customers and merchants

Every year, summer is the symbol of the sales. An operation that meets a great success with customers, and that does the business of merchants. The hunt for broken prices, and a habit well anchored in the habits of everyone who make the reputation of the summer sales every year. And yet, this year, they have disappointed. Indeed, 58% of traders draw a negative balance sheet from these summer sales. This can be explained by many factors. First of all, the health situation as a whole. Even if the country is no longer subject to a lockdown or curfew, putting in place all the restrictions inside the shops does not help. Welcome gauges are limited, and many customers give up on moving, preferring to buy online.

In addition, the summer sales did not take place on the same date as in other years. Indeed, their start was delayed by a week, which did not have the expected effect for traders. They are also 67% to have found this measure useless vis-à-vis their activity. This date change creates more confusion than anything else, including for customers. A strategy that ultimately did not pay off.

So much so that today, 66% of traders no longer see the interest of summer sales. Previously significant, they are no longer the annual springboard for the year’s sales. Indeed, they are now alongside private sales, destocking and other sales operations at reduced prices. Moreover, at the end of the summer 69% of businesses believe they have overabundant stocks at the end of this period. This gives only an anecdotal rate of very satisfied professionals, 2%, and 14% of people quite satisfied. There is therefore a marked evolution in the approach that businesses have with the summer sales.

Shopping shopping store
The 2021 summer sales did not have the expected success.

A need for support hammered by traders

The pandemic hasn’t helped shopkeepers get their heads out of the water, and neither has this year’s summer sales. Looking at the figures obtained during the 2019 sales, the observation is instantaneous: this year’s figures are much worse. 61% of merchants say their 2019 revenue was much better than in 2021, while 36% say they kept results roughly similar.

From the point of view of the declines recorded by traders, 30% suffered a loss of their turnover of between 20 and 30%. 27% had a loss of their turnover of between 30 and 40%. On the scale of a year this represents a more than substantial loss. Especially since many businesses have not set up private sales, which work better and better with customers.

Faced with the delicate situation of traders, especially after the pandemic, support measures are multiplying. The solidarity fund set up practically since the beginning of the crisis allows traders to get back on track. But this was not enough, especially with the amount of unsold stocks. A significant loss that the summer sales are not enough to absorb.

Also, on May 25, the Government decided to release a new subsidy for traders: aid for unsold stocks. This aid is calculated according to the amount of solidarity funds received by the company, and corresponds to about 80% of the sum. This help was much appreciated by the traders, who would like to see the help repeated once again. Indeed, the summer sales did not live up to expectations, again this year…

Sources:

Results Survey Balance Sheet of Summer 2021. SDI survey published in July 2021

Seasonal stocks: aid to traders paid from 25 May Ministry of the Economy, note published on 18 May 2021

Exceptional assistance to merchants for unsold inventory Legalstart

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