Consumers : New Retail Tactics Make Every Day a Sale--Somewhere

Smart shoppers don’t buy big-ticket items like new wardrobes, refrigerators or cars when the mood strikes. They track the sales in their area on a monthly basis, waiting until they know a particular item will be offered for less by department stores, specialty shops, discount houses or manufacturers.

Next month, for example, is the traditional time for finding bargains on coats, hosiery and rugs. But, because of the proliferation in the last few years of retailers’ one-day sales, you also may be able to spot a September or October sale on tires (usually in May), baby products (January and May), or diamonds (January).

One-Day Sales Lose Favor

In the 1980s the one-day sale has become a popular merchandising tool, but there are signs that retailers will be cutting back on these sale days and offering lower prices in general. “There’s a plethora of sales compared to 20 years ago, with many more of the one-day sales,” said Bill Dombrowski, vice president of corporate affairs for Carter, Hawley, Hale Inc., parent company of the Broadway. “We also tie the one-days into traditional themes, so that a one-day will be a white sale in January.” But, he added, “The fact is, our sale days have been less this year than last and the long-term strategy is to become less reliant on the one-day sale.”

Expensive cosmetics (such as Chanel or Lancome) are rarely on sale in department or specialty stores, but cheaper ones can be found at a discount usually in late January. Department stores often have promotional give-aways of cosmetic products--with the purchase of a high-priced perfume or other cosmetics--near Valentine’s Day, Mother’s Day or before Christmas.

It is hard to get a handle on coming sale trends--one-day sales, product giveaways, lower everyday prices--of most other merchandise because the fiercely competitive retailers guard their plans like gold at Ft. Knox.

“This is the most competitive business in the country,” admitted Dombrowski. “We’re in competition with other department stores, specialty stores, T-shirt stands on the corner.”

Traditional Sales

Many stores, however, do have sales on specific items at the same time, year after year, so consumers can anticipate good buys by keeping a calendar of the recurring events. In addition, storewide clearances on most all items are offered after Christmas, Easter and the Fourth of July.

Most industry analysts insist that the traditional sales months are honored by the majority of retailers, whether they offer a month-long sale or several short sales during a particular month. (See accompanying chart.)

“There’s still a tremendous bunch of traditional sales,” said Tomi Block of the National Retail Merchants Assn. in New York, the major trade organization of the general merchandise retail industry, which counts 45,000 member stores in the United States and 1,000 retail stores in 56 other countries.

“Most stores have started cutting down on the one-day sales,” Block said. “There are the normal holiday sales, back-to-school, but fewer last-minute sales. Last year, there was a sale every minute, but their (store) inventories are a little bit leaner this year, so there aren’t as many.”

Even though there were fewer sales this year nationwide, total retail sales, excluding automobiles, were 7.2% ahead of a year ago, as of August tallies by the trade group.

Sears has taken another tack, and won’t have as many specialty sales in its nationwide stores since the company decided on March 1 “to focus on everyday low pricing” of items.

“We’re making prices more competitive on a daily basis so people will shop more often and not have to wait for sales,” said Mary Jean Houde, a Sears representative in Chicago. “Consumer research indicated that most people would prefer not waiting for sales and have the lowest possible prices offered everyday.”

Sears also has instituted a “price pledge” to consumers, promising to meet or beat any other price, selling an item for the same price or less than the competition.

In the car market, not only are some dealers making price pledges similar to Sears, they’re offering unbelievable rebates on their 1989 models, anywhere from $500 to $2,500. If there’s a factory rebate included, you might be able to get as much as $4,000 off on certain models. (Dealers are offering rebates of up to $4,000 on Sterlings and $3,700 on Buick Centurys . )

“We’re making junkies out of consumers,” said Dan White, manager of the Southern California Chrysler Plymouth Dealers Assn. “It’s probably more confusing (to consumers) than ever. It’s not like the old days anymore, when you had the traditional cleanup period. Cleanup time was July, August and September so dealers could get the ‘89s off the lot.”

Breaks Direct to Consumer

Manufacturers used to offer dealers a 5% carryover allowance on current models when the next year’s line came out. The dealer could pass on the savings to the consumer if he wished. But manufacturers have discontinued that practice, preferring instead to give rebates directly to the consumer. Today, although they still have 1989 models available, some dealers are already offering rebates on 1990 models.

Some auto manufacturers also bring out new car lines in midyear now instead of on the traditional Oct. 1 date, so consumers can frequently get new car deals on those brands in June instead of September, White pointed out.

“The traditional clearance time is gone forever,” observed Mickey Garrett, executive vice president of the Greater Los Angeles Motorcar Dealers Assn. “Incentives and rebates are here to stay in the auto manufacturing business. . . . It’s a consumer-driven market and it looks like it will be for many, many months. There are more cars being introduced everyday and the industry is overproducing. There’s a tremendous amount of inventory.”

Garrett said he would advise consumers to do a considerable amount of price shopping if they are in the market for a new car.

“People just have to look for the rebates,” he explained. “If they hold off (buying a 1989 edition now) they’ll see rebates on the new 1990 ones. Toyota, Nissan, Chrysler and Chevrolet are already offering them on some models. Consumers can get good deals now, but if they hold off ‘til towards the end of July, 1990, they’ll get even better ones.”

BEST BUYS BY THE MONTH JAN.: Sheets, towels, linens, coat clearances, furs, baby products, diamonds, cosmetics, lingerie, luggage, drugs, TVs and radios. Good time to do shopping for next Christmas. FEB.: Furniture, fabrics, hosiery, carpet, furs. MARCH: China, glassware, dishes, silver, washing machines and dryers. APRIL: Air conditioners, diamonds, sleepwear and lingerie, kitchen ranges, paint and wallpaper. MAY: Linens, sheets, blankets, towels, baby needs, home furnishings, housewares, luggage, tires/auto accessories. JUNE: Furniture, sleepwear and lingerie. JULY: Swim suits, refrigerators/freezers, garden supplies, shoes/sandals, automobiles (traditional cleanup sales through September). AUG.: Household linens, garden furniture, accessories, furs, back to school clothing/shoes. SEPT.: Housewares and home furnishings, cars. OCT.: Coats, hosiery, rugs. NOV.: Wines and liquors, coats, furs, furniture. DEC.: Men’s coats and suits, women’s dressy dreses, cameras, post-Christmas sales, including cards, wrapping paper and ribbon.

Sources: National Retail Merchants Assn. and other trade associations.