As shoppers battle the rising cost of living, end of financial year (EOFY) sales let customers secure a bargain — and give retailers the perfect opportunity to offload stock before the new tax year. But deep sales can change the way customers approach retailers, and build the perception that sooner or later, the full-priced stock will face hefty discounts. That’s the view of independent brand counsel Michel Hogan, who has advised retailers to think carefully about what their sales strategy telegraphs to customers, both now and in the future.
Speaking to SmartCompany in the depths of EOFY sales season, Hogan said a “drumbeat” of constant sales activities can condition customers to expect deep discounts on a regular basis. However, there are ways for brands to meaningfully tap into the sales period, without diminishing the core aspects of their brand. Constant discounts risk sales burnout The 2023-2024 financial year has been difficult for consumers and small businesses alike, as persistent inflation and the interest rates designed to curb those cost increases have suppressed discretionary spending.
Now, the EOFY sales period represents a chance for shoppers to spend on goods they couldn’t justify at full price. The Australian Retailers Association (ARA) and Roy Mogan predict shoppers will spend $10.1 billion through the EOFY sales period, an 8.
6% increase on the year prior. Much of the projected increase is due to rising population numbers, the ARA said. However, the.
