The hits business.
I just bought a brand new suit from Banana Republic! On a personal level, I am giddily ecstatic about my purchase. 40% off and free shipping — I saved $120! As a money-conscious “young professional”, I should be positively out-of-my-mind to pass that up.
On the other hand, my company has been looking into developing a public portfolio of stocks. This recent, but intense discussion has definitely set off a lot of thinking in my head about what drives and hinders the economy. And quite frankly, on a macroeconomic level, I know that I should be alarmed by this desperate gasp for cash flow, masked as happy-go-lucky corporate “generosity”.
More and more companies each day are succumbing to this “hits” business model. As they repeatedly entice their customers with “exclusive” sales, they inevitably take a “hit” by accepting slimmer margins. They then wait nervously for revenues from the increased volume of sale-induced orders to outstrip normal revenues gained through ordinary average order value. And really, what this all boils down to is that the economy is still in the gutter — at least according to consumer spending, with it’s inescapable lag.
I recall typing “Abercrombie & Fitch promo code” into the Google search bar a year ago, thinking dejectedly to myself that it would benefit the world if the company would just make use of it’s promo code field on the checkout screen. Search results pulled up plenty of sneaky tactics that would yield minor discounts via A&F customer service reps, and led to many fervent assertions that A&F would never ever ever ever utilize discount codes. Yet that era of A&F price immunity has passed, and today, my inbox is constantly spammed with once-fabled A&F promo codes. Seems like a pretty good proxy for the state of retail to me.
But fast-forward to next week: when I snuggle into my flattering grey melange trousers and don that sleek charcoal suit jacket, I’m sure this will all conveniently fail to cross my mind… what a simple creature I am.
The hits business.
I just bought a brand new suit from Banana Republic! On a personal level, I am giddily ecstatic about my purchase. 40% off and free shipping — I saved $120! As a money-conscious “young professional”, I should be positively out-of-my-mind to pass that up.
On the other hand, my company has been looking into developing a public portfolio of stocks. This recent, but intense discussion has definitely set off a lot of thinking in my head about what drives and hinders the economy. And quite frankly, on a macroeconomic level, I know that I should be alarmed by this desperate gasp for cash flow, masked as happy-go-lucky corporate “generosity”.
More and more companies each day are succumbing to this “hits” business model. As they repeatedly entice their customers with “exclusive” sales, they inevitably take a “hit” by accepting slimmer margins. They then wait nervously for revenues from the increased volume of sale-induced orders to outstrip normal revenues gained through ordinary average order value. And really, what this all boils down to is that the economy is still in the gutter — at least according to consumer spending, with it’s inescapable lag.
I recall typing “Abercrombie & Fitch promo code” into the Google search bar a year ago, thinking dejectedly to myself that it would benefit the world if the company would just make use of it’s promo code field on the checkout screen. Search results pulled up plenty of sneaky tactics that would yield minor discounts via A&F customer service reps, and led to many fervent assertions that A&F would never ever ever ever utilize discount codes. Yet that era of A&F price immunity has passed, and today, my inbox is constantly spammed with once-fabled A&F promo codes. Seems like a pretty good proxy for the state of retail to me.
But fast-forward to next week: when I snuggle into my flattering grey melange trousers and don that sleek charcoal suit jacket, I’m sure this will all conveniently fail to cross my mind… what a simple creature I am.
Posted 1 year ago
