Retailers in Jordan express concern over the implications of November sales events, particularly the reliance on discounts like White Friday. While these promotions lead to short-term increases in consumer spending, they foster a ‘sales culture’ that disrupts regular buying cycles and poses risks to the profitability of local businesses.
Retailers in Jordan are increasingly anxious about the effects of November sales, including the highly anticipated White Friday, which has transformed the retail environment. These seasonal discounts, while beneficial in the short term, are contributing to a prevalent ‘sales culture’ where consumers are reliant on promotions, leading to significant disruptions in the regular flow of retail activity across numerous sectors. Eyad Samara, a furniture store employee in Amman, elaborated on the dual nature of these sales: “Such discounts are a double-edged sword. In Jordan, we are witnessing a downturn in sales across different industries year after year.” While events like November sales temporarily boost retailer revenues, they bring troubling long-term consequences for consumer behavior, local businesses, and the economy at large. Samara further remarked, “When sales increase in November due to these discounts, we usually experience a decline afterwards, sometimes lasting for a month or more.” Furthermore, the massive increase in consumer spending observed during this month often masks underlying issues, such as excessive reliance on sales and the habitual purchase of non-essential items. Marketing specialist Baraa Awad reported notable changes in consumer behavior, revealing that many retail clients have experienced more than a 30 percent increase in online sales since November’s onset, showcasing a marked shift compared to discount-free periods. Fashion retailer Mohammad Marwan raised concerns about the potential long-term impacts of such sales strategies, stating, “Retailers often sacrifice profitability just to attract customers. Over time, this can lead to financial instability, especially for smaller businesses in the country.” He observed his shop has seen sales increase by 40-50 percent, yet rising operational costs hinder the expected profit margins.
The article addresses the phenomenon of November sales, particularly White Friday, and its significant implications for retailers in Jordan. These sales events, while providing a short-term influx of consumer spending, contribute to a culture where discount shopping becomes the norm. This behavior not only affects individual businesses and their profitability but also impacts the broader economy by undermining regular retail cycles and fostering excessive consumption of goods that may not be necessary.
In summary, while November sales have proven beneficial for immediate retail performance in Jordan, the long-term effects raise important concerns among retailers. Stakeholders emphasize the need to balance promotional strategies with sustainable consumer behavior to ensure economic stability and protect the profitability of local businesses. The challenge lies in navigating the dichotomy of short-term gains against potential financial risks that could affect the retail sector for years to come.
Original Source: jordantimes.com
