Apr 24, 2018 18:46
6 yrs ago
2 viewers *
English term
smooth the sales over the cycle
English
Other
Economics
The reason for Falabella’s resilience is its assortment of businesses, spread judiciously across six countries. Besides its 101 department stores, it runs 102 supermarkets; together these generate about half of the group’s retail revenues. The other half comes from 246 big-box DIY shops (the result of a merger with Sodimac, another Chilean firm, in 2003). The fortunes of the three do not overlap exactly, helping to smooth sales over the cycle.
what do you understand by "smooth the sales over the cycle"?
Many thanks in advance.
what do you understand by "smooth the sales over the cycle"?
Many thanks in advance.
Responses
+2
57 mins
Selected
The three systems have different periods of peaks and recessions, that alignes total revenue
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Peer comment(s):
agree |
Terry Richards
11 hrs
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Thank You, Terry!
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agree |
Tina Vonhof (X)
: I agree that it most likely is looking at the long term, not over any fixed period.
20 hrs
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Thank you, Tina!
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neutral |
Daryo
: "recessions" refers to a different kind of cycle - over quite a number of years // this ST is simply about seasonal variations over one year.
21 hrs
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Thank you for the note, Daryo. But mostvusual recession period is half a year, though it varies, as Tina mentioned.
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4 KudoZ points awarded for this answer.
Comment: "Many thanks!"
48 mins
even out sales during a particular period
As Tony says, it means reduce the peaks and troughs.
The cycle is the business cycle, which usually (but not always) means the year.
The cycle is the business cycle, which usually (but not always) means the year.
Peer comment(s):
neutral |
Terry Richards
: I think the emphasis is more on the "boom and bust" cycle here.
11 hrs
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Discussion
DIY does well in recessions because people will tend to fix it themselves rather than hire a professional. Department stores don't do as well because their demand is highly variable - more at the luxury end of the market. Supermarkets just keep going pretty much regardless of the current economic conditions - people still have to eat!
I would understand this as meaning that this diversity in the business means that sales peaks and troughs are evened out across different sectors; as a simplistic example, even though sales of electric heaters will probably drop off in the Summer, this will be made up by increased sales of garden furniture!