Retailers express concerns as November sales drive shifts in consumer behaviour

AMMAN — As November discounts continue to dominate the Kingdom's retail landscape, stakeholders are expressing growing concerns about the long-term impact of these sales events.

While they have certainly had a positive short-term impact, they have also contributed to the development of a "sales culture"—a consumer behaviour increasingly reliant on discounts, which disrupts regular retail cycles across various sectors.

Eyad Samara, an employee at a furniture store in Amman said: "Such discounts are a double-edged sword. In Jordan, we are witnessing a downturn in sales across different industries year after year."

While the November sales events provide a short-term boost for retailers, they come with long-term consequences for consumers, businesses, and the broader economy, Samara said. 

He added: "When sales increase in November due to these discounts, we usually experience a decline afterwards, sometimes lasting for a month or more."

The widespread popularity of November sales, such as White Friday, has significantly impacted the local economy, according to several retailers. 

They also highlighted that these sales events stimulate increased consumer spending, but they also expose deeper issues, such as over-reliance on sales periods and excessive consumption of non-essential goods, which negatively affect other retail cycles throughout the year.

Baraa Awad, a marketing specialist, noted that many retail clients have seen over a 30 per cent increase in online sales since the beginning of November, signalling a significant shift in consumer behaviour when compared with periods without discounts.

Mohammad Marwan, a fashion retailer, highlighted that the long-term effects are more concerning, saying: "Retailers often sacrifice profitability just to attract customers. Over time, this can lead to financial instability, especially for smaller businesses in the country."

Marwan also said: "While my shop's sales have increased by 40-50 per cent since the beginning of November, rising operational costs mean that the expected profit margin has not materialised."