Retailer Dickson Concepts (International) believes its 21-month slump is over and plans to stop slashing prices.
The strategy is simple, according to executive chairman Dickson Poon.
He views the retail business in hard times as a tug-of-war between retailers and consumers.
'When retailers slash prices too aggressively, consumers will hold off on their spending,' he said.
However, 'if retailers believe in a pick-up in consumer spending and demonstrate their determination to hold prices steady, consumers will start spending again.' Mr Poon believes retailers are in a better position to stay firm on their prices because of cautious inventory management.
'In preparing for the latest fall-winter collections six to eight months ago, most retailers were more cautious than ever in ordering new merchandise in an effort to avoid excessive inventory build-up,' he said.
