Cold Russian summer-2017 makes Moscow stores reduce prices - Information portal

Cold Russian summer-2017 makes Moscow stores reduce prices

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27.06.2017 Количество просмотров 179 views
487da143207af9d084d119cbd02a744f.jpgRetailers say that profits dropped to 30% because of the bad weather. To fix the situation, stores announce sales.

While discounts are usually around 15-30% by mid July, now they reach 50% in the mass market. Clothing from leading fashion houses is offered at half the price in online stores of major Russian players. Brick-and-mortar retailers are working under a schedule of deliveries tailored to weather forecasts. When the demand for beachwear, for example, is postponed, this causes serious loss for the business, explains Anna Lebsak-Kleimans, Fashion Consulting Group CEO.

She adds: “The forecasts are tentative yet, but the current discrepancy between real and planned sales in April and May already reaches 20-30%. All retailers talk about the lost profit. This year sales have started earlier due to reduced buying activity and because the assortment in the store is intended for the warm summer weather, while the demand is focused on the colder one.”

As for selling luxury class goods in Russia, even a cold summer is unlikely to hit the market. If in 2015 it sank by 9%, last year it resumed its growth to amount to almost 230 billion rubles. This year, analysts forecast growth by another 9%. But in general, the bad weather has a detrimental effect on business. The demand for air conditioners fell, while for heaters it has grown. And this is taking place in May-June.

Source:  Retail & Loaylty


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