Steinhoff-owned furniture retailer, Freedom, has permanently dropped the prices on over 5000 products, in a move to battle consumer frustrations caused by the industry’s endless promotions cycle.
In today’s announcment, Freedom said launching the price drop was the first phase of a a new customer-centric strategy and ongoing commitment to authenticity and transparency in pricing and providing quality merchandise.
“We recognise that today consumers can be frustrated by the shopping experience,” said Tim Schaafsma, managing director of Freedom Australia.
“They are frustrated when they buy something and it goes on sale the next day, and they are frustrated when they find something they like but feel like they have to wait for it to go on sale.”
Schaafsma said the ‘Everyday Value Promise’ is a shift in strategy for the furniture retailer, moving “away from sporadic and potentially confusing sales promotions that have defined our category.”
“A commitment to everyday prices, combined with our stylish, quality products and outstanding service, benefits consumers who will be better-informed and more confident when purchasing the furniture and homewares they want,” he said.
Steinhoff said the move to an everyday low price approach follows research and feedback from customers that shows; consumers are frustrated and confused by the industry’s constant promotions cycle; strongly dislike when they find an item they want to purchase but feel like they have to wait for it to go on sale; abhor when they make a purchase and the item goes on sale the day or week after; and struggle to understand what constitutes a fair price these days, with so many sales at so many different retailers.
‘Promotional fatigue’ was outlined by retail executives and analysts in January and February earlier this year following a lukewarm Christmas trading period.
Christmas was intensely competitive, with shoppers confronted by sales of increasing magnitude at every opportunity, and with discounting starting even earlier than usual to compete with US Black Friday sales in November, there are fears shoppers will reach peak sales fatigue again in the crucial upcoming trading period in December.
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