Shop-Till-You-Drop Deals: Retailers Don't Tell You This About Seasonal Sales

In the opening scene of Serendipity, Jonathan and Sara spin a fake tale to buy the last pair of black cashmere gloves at a Christmas sale. All's fair in love, war and also limited stock Christmas sales. The price-drops, limited edition stock and discounts of December leave both the budget and shoppers breathless.

The holidays bring a jolly sense of freedom to splurge and the signboards screaming sale can make most people seasonal shopaholics. Behind the intentionally placed testers, decked-up stores and best-prices-ever boards, is the fact that retailers are counting on impulsive buying.

Retailers aim to boost sales by pushing demand higher through targeted promotions and creating urgency to mindlessly buy during sales. Brands are often looking to build their membership base and loyalty programs as more customers walk into stores for the sales.

"Retailers will capitalise on this seasonal trend. Consumer behaviour always changes over the year, and spending peaks at festivities or celebrations," said Larissa Fernand, a behavioural finance expert.

However, a huge segment of the population will alter their spending habits in response to the cost-of-living challenges. "This is when nudging comes into play. Nudging does not change people’s behaviour, just guides them to make certain choices, while letting them feel like they’re in the driver’s seat," she said.

One of the nudges could be on decision paralysis, she explained. Consumers are often confused about what to gift people. The seller steps-in and does the picking for you.

"Retailers put a variety of goods in a hamper, and these ease the burden of making choices, and is appealing in the way it is packed and presented. It is a pre-selected option that eases stress," she said.

The offer could be around prices as well, with offers like buy two at a discounted price or just an outright sale. With e-commerce picking up, the nudges extend to promotions on social media, as they pick on the consumer's fear of missing out.

Deciding to spend too little can only end in hefty bills, while letting go of reins will result in pointless purchases. Finding the middle ground is key, as planning and figuring out what one needs to buy is a good route.

"Your biggest enemy will be impulsive spending. Plan before you leave the house, as to what it is you want to shop for, and for whom. Set a budget as to how much you are going to spend," Fernand recommends. Settling for mini versions or reducing the number of items can help one to not forgo the purchase completely.

Now, these sales and price drops can also be taken advantage of with planning. Saving to buy a specific product that will see a price dip in a specific season is something that can be done.

"Waiting to buy things at a cheaper price is fine, but people end up spending more on what they do not need. One has to make a budget. If one wants to wait for a sale or a price drop for a purchase, one can take advantage of that," said Pankaj Mathpal, founder of Optima Money Mangers.

Mrin Agarwal, founder of Finsafe, echoed this and advised to pace the purchases. Waiting one or two days before the purchase can help weigh the value of the product better, according to her. One can evaluate the worth of the purchase in terms of usage and price and necessity.