Magazines Archives - 2009 February

Slashing prices to stave off sales slump - Part 1: Is it a sound tactical move or a zero-sum game?
Cover Story - One Viewpoint

The world’s worst economic recession in recent history has set in and consumer sentiments have plummeted sharply, causing consumer spending to follow suit. Retail sales are dismal and aggravating the situation is the accepted belief that the worst is yet to be. Retailers have responded by giving price discounts. Cutting prices has regularly been used by retailers to buy sales turnover in times of flagging sales. In the current state of the market, will price discounting work? Will it lift the top line or will it simply incinerate the bottom line? What practical alternatives are available to Asian retailers to cope with and to survive the crushing sales contraction? By Steven HL Goh

Steven HL Goh is the executive chairman of RETAIL ASIA. He is also the CEO of The Business Company, a consulting firm advising multinational retailers on retail strategies and business development opportunities in the Asia-Pacific.

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