Three consecutive months of declining sales are enough to warrant a diagnosis, but not to conclude immediately that 'the market has stopped working'. Revenue results from several factors: visitor numbers, conversion rate, average transaction value, purchase frequency and availability of the right products. Break down the decline before deciding what to change.
First establish where sales are falling
A hybrid shop should distinguish between physical retail, e-commerce and any marketplaces. If in-store sales fall while online sales rise, the problem is different from a decline across all channels. Analyse the drop by week and product category as well, so that normal seasonality is not mistaken for a structural crisis.
Traffic, conversion or average order value?
Revenue can fall because fewer customers visit, because they buy less frequently or because they spend less each time. These three situations require different responses. Falling footfall points to acquisition or location; falling conversion may indicate problems with the range, prices or service; declining transaction values may be caused by the product mix.
Review margins alongside sales
A fall in revenue with stable margins is not as serious as falling revenue combined with a shrinking margin rate. Conversely, turnover may remain steady while the shop sells more products that contribute little profit.
Revisit our product mix analysis and margin calculations.
Check stockouts and slow-moving inventory
A shop can lose sales of its best products while holding plenty of stock overall. Examine stockouts of A-class products in your ABC analysis, the number of out-of-stock days and the share of capital tied up in slower-selling items.
Compare with the same period last year
Month-to-month comparisons can mislead in a seasonal sector. Where possible, compare with the same period in the previous year, accounting for special events such as relocation, an advertising campaign, temporary closure or changed opening hours.
Decide what to do after the diagnosis
The answer may be commercial, operational or financial: strengthen best-sellers, reduce purchases of slow-moving products, revive local customer acquisition, rethink a product category, adjust prices or improve replenishment. Only then should you assess whether a promotion is appropriate.
In 2026, the French Ministry of the Economy highlights the importance of addressing early signs of difficulty rather than waiting for a crisis. Free and confidential public support is available when problems go beyond a simple sales slowdown.
Official source
French Ministry of the Economy — Where to turn when your business faces difficulties