The Winter Sales were to be a way, for traders, to start the year 2021 on the hats of wheels with promotions in shambles on a gigantic stock because of the sanitary measures of 2020. This was not the case … and now the executive is considering a way to compensate for the stocks that have not been sold.
The sales under curfew did not attract the crowds
Initially scheduled for early January 2021, the Winter Sales had been postponed to the end of January in the hope that the health situation would improve. But curfews continued to be the norm, effectively reducing store hours. The government then extended the balances by two weeks in an attempt to compensate … again without success.
Result? The French have not been there, despite the billions of euros saved in 2020 and on which the executive is eyeing for the recovery. According to the Retail Int barometer carried out for the Alliance du Commerce and unveiled on March 2, 2021, Winter Sales 2021 activity will have been 22% lower than normal.
Between curfew, the inability to eat outside (which makes it impossible to do a whole day of shopping) and the closure of very large shopping centers, the 2021 Winter Sales were mixed at best, if not a failure.
Compensate stocks so that businesses have cash?
The problem facing traders is now the following: they were not able to recover as much cash as desired … and therefore cannot invest in new spring-summer collections (for clothing), or even new products that are starting to have to be put on the shelves. A vicious circle from which traders cannot escape.
Alain Griset, Minister of SMEs, and Bruno Le Maire, Minister of the Economy, are looking into the issue. Asked about France Culture on March 2, 2021, the first announcement to study a way of “ take into account the loss of value of stocks »As part of the solidarity fund.
If the technical details are still to be specified, the principle would be simple: by offsetting unsold stocks, or at least a part, of businesses, they could invest in new products and restart the machine. And perhaps keep the unsold items to bring them out, as a net gain, during the next Sales?