To Innovation - Breaking Politics, Economics, Crypto & IT News

learn more
Reporting from Watford, UK and LA, US since 1996
learn more

John McAfee death was a suicide, autopsy confifms

John McAfee's relatives will finally bury him now

Russian Chain Stores Offer More Sales and Promotions

This is due to the decrease of demand in some products.

31.Jul.15 10:27 AM
By Anna Repina


Russian Chain Stores Offer More Sales and Promotions
Some categories of products in Russia have become in less demand over the couple of months due to low ruble exchange rate. They include footwear, clothes and techniques. The sales rate has become twice lower in comparison with the same period last year. That is why most chain stores provide customers with more promotions and sales to attract more potential buyers.

Domestic retailers are increasing price of their products due to low level of ruble exchange rate. The problem is that such growth is rather unpredictable and unstable. Some products have become 60% more expensive in comparison with last months of the previous year. Such retailers’ behavior has a negative effect on total demand rate.

That is why chain stores have nothing to do but to make the price lower and arrange additional sales and promotions. According to the latest statistics total price growth on all groups of products is 10% higher if compared with the same period last year. On the other hand, such approach made it possible to stop the price growth on particular categories of goods.

On the other hand, some analytics say that such promotions and sales are nothing more but cheating. After retails proceed with artificial price increase making it 50%-70% higher, chain stores offer sales and discounts which actually return the price to the original rate. In other words, purchaser do not save money. Moreover, it was noticed that some stores offer their products during sales at even higher price than it was before promotion. Such methods are used to keep high sales level.

Back to the list

Related Information: