Sample Essay

The research has highlighted that in the face of the recession that has been occurring in 2008, while in-store sales shrunk for most companies, online sales flourished for most especially for Marks & Spencer who faced almost 80 percent growth in its online sales. The low costs of operating and maintaining the online shopping portal as opposed to the store increase the profit margins available from the sales of products and services online. Moreover the retailer is able to target the market that is unable to come to its satires to make their purchases. The retailers should therefore seek to diversify into other mediums of making sales and contacting the customer as well, particularly the internet based shopping portal that is increasingly becoming popular amongst the target market for making Christmas purchases.

Aside from this the retailers should also make an effort to stream line their operations and ensure minimum costs associated with wastage with investment in information & systems technology in order to generate high profit levels during the Christmas season. This is mostly because during the Christmas season the profits usually come from sales volume with heavy discounting often being conducted to be competitive in the limited time available to attract the customers. The retailers also launch marketing campaigns that eat add to the costs associated with conducting business. This reduces the profit margins and with high overhead costs and those associated with wastage the profit margins for the retailers can often shrink further during the Christmas season.

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