Monitoring the media often highlights lots of interesting patterns and trends. Recently, following the Q3 results season, there has been a trend involving what some people noted as 'throwing in the towel'. Examples include Standard Life deciding to sell up to Barclays and Myspace announcing they are to start integrating applications into Facebook and MSN, all but admitting they have failed in their bid to compete with the social media giants.
If it really is 'throwing in the towel' season it was certainly eye catching to read about the strategy of retailers approaching the Christmas holidays. The last year has been horrendous for many high street stores and despite the CBI announcing that sales grew 'modestly' over the year to October many must surely now be hanging by a thread. However, with consumers expected to head online for cheaper gifts this year you definitely can't accuse high street vendors throwing in the towel. In fact, it appears they are coming out fighting.
41% of stores polled in a recent survey said they were ditching traditional discounts and special offers and focusing on customer service as a way of drawing in buyers. That is a bold and deliberate strategy set up to compete with the cheaper lure of the Internet. It's risky, seeing as this Christmas will be tough for many caught in the midst of recession, but it's a sign of intent, a right hook thrown at online competitors. Is it simply a last throw of the dice? Quarter 4 results are likely to hold the answer.
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