The Power of Retail

Retailers are always trying to mix things up in their endeavor to get customers to spend more money and one of their new tricks this season is to mix new merchandise along with old merchandise that is being offered at a deep discount. According to Dennis Tootelian, marketing expert from California State University at Sacremento, “We’re starting to see stores use deep discounts as a loss leader. Then they’re bringing in more trendy, new merchandise at full price. People with gift cards are more willing to pay that because they feel like the card is free money.”

Since the lackluster holiday season, retailers are looking for fresh ways to attract customers and this one could be quite a successful tactic, and are offering greater discounts than the same time last year. According to the International Council of Shopping Centers, last minute shoppers could not salvage a slow Christmas and now retailers are hoping for a post-Christmas binge by shoppers.

Stores such as Target and Mervyn’s are hoping for customers to come in and take advantage of the special markdowns that they are offering. Mervyn’s will even be opening at 6am to move its 60% off clearance items.

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