Retailers in Jordan express concerns about the impact of November sales events, such as White Friday, on consumer behavior and the overall economy. The sales create a culture of discount dependency, leading to volatility in sales patterns. While temporary sales increases are reported, these often come at the cost of long-term profitability, particularly for smaller businesses that suffer from rising operational costs associated with discount events.
The prevalence of November sales events, including promotions like White Friday, is prompting serious concern among retailers regarding its implications for consumer behavior and the broader economy. Although these sales provide a temporary boost to sales figures, they contribute to the creation of a “sales culture,” leading consumers to develop an increasing dependency on discounts, ultimately unsettling traditional retail cycles. Eyad Samara, an employee at a furniture store in Amman, noted, “Such discounts are a double-edged sword. In Jordan, we are witnessing a downturn in sales across different industries year after year.” Furthermore, while some retailers report jumps in sales, they often follow with significant declines, impacting profitability in the long run. Baraa Awad, a marketing specialist, remarked on the shift in purchasing behavior this November, noting a 30 percent rise in online sales. According to fashion retailer Mohammad Marwan, despite witnessing a 40-50 percent increase in sales during the November period, rising operational costs negate anticipated profit margins. He expressed concern for the sustainability of such a strategy, stating, “Retailers often sacrifice profitability just to attract customers. Over time, this can lead to financial instability, especially for smaller businesses in the country.” These insights highlight the significant repercussions of promotional events on retail dynamics and consumer practices in Jordan.
In recent years, the retail landscape has shifted significantly, particularly during the month of November, which is characterized by massive sales events. Prominent among these is the White Friday promotion, which simulates global shopping phenomena like Black Friday. Retailers are increasingly embracing these sales as a strategy to compete in a challenging economic environment. However, stakeholders are now questioning the sustainability of this approach regarding consumer dependency on discounts and the financial health of retailers, especially small businesses.
In conclusion, while November sales events provide temporary increases in consumer spending and sales for retailers, they also pose long-term challenges that could undermine the stability of the retail sector. The development of a sales-centric culture may negatively impact regular purchasing behaviors, leading to cyclical downturns in sales following peak discount periods. Retailers must carefully weigh immediate gains against potential long-term consequences to ensure a balanced and sustainable approach to sales strategies.
Original Source: jordantimes.com
