The View | Why the Christmas peak season is bad for my business

We are now entering the peak shopping and entertaining season, known to some people as the period prefacing a religious festival and to the majority of people as a somewhat frenetic time of year for commerce.

I do not wish to be a party pooper or disrespectful to practising Christians who enter this season with serious intent but, frankly, the world of commerce does seem to loom rather larger than anything else at this time of year. Indeed it is seen as the boom time for retailers because no other month compares with December for retail sales and indeed for sales in my business of catering.

It may therefore appear to be somewhat churlish to question whether this seasonal sales peak is in fact good for business, but it is a valid question.

That question has been answered by some economists who believe that Christmas season sales have the overall impact of depressing the retail market because anticipation of gifts acts as a curb on purchases and the amount spent on gifts is below that which would be spent by end users on direct purchases.

Then there are social psychologists who wonder whether people would be more or less motivated to go out and spend more consistently throughout the year if the buying frenzy were not concentrated in just one period. It’s an interesting question because it is well known that the key to successful retailing is finding reasons to get people to come and buy. In other words, to discover ways of motivating customers – seasonal events often achieve this aim.

READ MORE: Take the stress out of Christmas shopping by doing it online

There is some support for the views of those who believe that overall buying is depressed by single-period sales booms because in places where Christmas is celebrated (albeit often in an entirely secular fashion), this season is quickly followed by a bout of intensive discount sales aimed at clearing stock and generally boosting turnover. Were there not the tyranny of the Christmas sales peak and the subsequent intense slump in normal business (which accounts for the timing of these sales), retailers would have better control over when to shift goods by offering discounts.