Finland Times

Monday, 03 October, 2022
Home BUSINESSRecession stiffens Xmas price competition
Tue, 15 Dec, 2015 12:01:15 AM
FTimes – STT Report, Dec 15

Intensified price competition due to the recession has appeared in the Christmas sales.

“Because of the economic situation, prices are the most important thing to most people,” said Professor Arto Lindblom of Aalto University.

The strong growth in e-commerce, he said, has created a whole new kind of pressure on pricing.

“Consumers have the opportunity to check prices online, and consumers today are extremely price-conscious,” Lindblom said.

The Federation of Finnish Commerce previously estimated that Christmas commerce will remain the same as last year. The euro has lost some of its buying power, and

Christmas commerce is expected to decline one and a half per cent, the same as last year, said the federation.

According to Professor Lindblom, the recession creates pressure on merchants to move their Christmas promotions forward in time.

“One [shop] does it, and it becomes a chain reaction that causes others to start their sales earlier,” the professor added.

Christmas promotions are expected to start beginning this week, even though the biggest rush will likely come after Christmas.

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