Is France's sales season still in style?

It's that time of year again in France: Sales season! Clothing stores are allowed to slash prices and use the word 'sale' ‌just twice a year, in the winter and summer.

The French government imposes these rules to prevent shops from constantly undercutting each other. State-regulated sales cycles offer a rare chance to entice consumers with steep discounts. They also allow retailers to offload stock. But the 'big sales' may not have the same clout as they once did, especially in an economy that's looking a bit worse for wear.

‌"The first day wasn't as good as last year, but we're still in the green," says Christine Mellado, manager at children's boutique Le Petit Souk.

READ MORE

What constitutes genocide?

WEF calls for solutions at Davos 2024

Food for the future: The Agenda

M‌ellado has put a lot of focus on winter sales over the last few years, but she only has a limited selection on offer this time around. "It's not what brings us the most customers," she says. "There's also the economic context. People are thinking twice before spending their money."

Time to tighten the belt

France's economy is not exactly booming right now. Gross domestic product shrunk 0.1 percent in the third quarter of last year. Inflation was just under 4 percent in December - much lower than the 5.8 percent spike the year before - but it's still way above the average for the past decade. Unemployment is relatively low by historical standards, but it has been ticking higher, hitting 7.4 percent in the third quarter of 2023.

Online retailer Spartoo has released a survey showing that one out of four respondents are skipping this year's winter sales. And while the seasonal sale is by no means out of fashion, many of those planning to splash the cash say they'll spend less than usual this year. 

‌"The sales are less eagerly awaited by consumers these days,”says Franck Leheude, Director of Studies and Research at Credoc. "Apart from inflation, which limits the French shopper's interest in clothing, there are many other chances to get good prices on clothes throughout the year.”

Keyboard consumers

‌There are also more and more options. Ultra-fast fashion has exploded with shops offering some items at rock-bottom prices. Meanwhile, online sales in France have more than doubled over the past decade.

‌"Today, the internet accounts for around 20 percent of clothing spending in French households, and this is particularly true of young people," says Leheude. He says this year's sales will focus on households headed by blue-collar workers. Many of these families have embraced the sales over the years because they're on tight budgets. Now they're getting some extra attention from retailers.

The Law of the Sale

Experts believe this year's winter discounts will bump January clothing sales figures by three percentage points. And even if Le Petit Souk doesn't see much of that money, Mellado says government-regulated sales are crucial because shops will constantly try to 'outprice' each other if the rules aren't in place. Price wars could make it difficult for smaller stores to survive.

‌"If France doesn't regulate the sales, we'll have more and more of them. Anyone can offer discounts at any time, so I think they need to be regulated.”