[imagesource:supplied]

South Africans love a bargain, especially during a time when a trolley full of groceries costs the same as a Jurgens caravan.

Retail behemoth Massmart has now opened an experimental clearance outlet called ‘The Last Chance Store’ in response to customer research that highlighted “exceptionally high consumer demand for quality hard goods at basement bargain prices”.

The stores will not be selling ‘groceries’ per se, but rather ‘slow-to-sell’, non-food products at heavily discounted prices.

Katherine Madley, Massmart’s marketing vice president says, “The South African consumer is under considerable economic pressure, certainly amongst the worst that we have seen in a long time. This has resulted in keen price sensitivity to home essentials products whilst also eroding discretionary spending on non-food products, like appliances.”

Clearance sales are not a new thing, but Massmart is trying out a full-time, designated store to test the waters. Makro has been pointed out as having the lowest cost on a basket of grocery essentials by The Outlier, with Game Stores also keeping their home essentials prices lower than most retailers.

This has resulted in high double-digit sales growth for both outlets and shows that South Africans are actively searching for better prices. Enter the ‘Last Chance Store’.

Massmart specifically located The Last Chance Store alongside Game because of its appeal, particularly with the Game customer. The store is located within a regional mall versus more traditional locations such as strip malls and the product range is carefully curated.

As mentioned, you won’t find cheese and bread at these stores, but the product selection comprises in-demand products that consumers are prepared to forgo at normal retail prices. Discounts in the store range from 30% to 60% and include products such as small appliances, TVs and tools.

Madley adds, “There can be a misconception around clearance stock being damaged or inferior. This is not the case in our Last Chance Store where we are discounting stock that is slow-to-sell simply because under-pressure consumers can’t afford to purchase it at normal retail prices.”

@by_megantoni 📍 The Last Chance Store, Fourways Mall #discountshopping #homeware #shopforless #bargainhunting #bargainshopping @Game Stores SA #FourwaysMall #budgetshopping #shoppingonabudget #homedecor #decoronabudget #homewareplug #southafrica #fourways #johannesburg #TheLastChanceStore ♬ Strong Woman – DJ Chris Parker

Massmart said it will continue the ‘experiment’ to see if further investment in the concept is viable.

These stores seem like a good idea, despite the unfortunate name. ‘Last Chance Store’ brings up the same depressing feeling as ‘End of the Road’.

Then again, it seems that’s where most South Africans find themselves.

[source:bizzcommunity]