Deloitte finds retailers are set to slash prices disproportionately in Christmas run-up
Following a festive period marked by weak spending, strong competition and relatively mild weather, retailers are set to make discounts of up to 50% in the lead-up to Christmas.
Right now, high street shops are offering discounts of up to half, with online retailers going even higher. Up to 50% off is available at Debenhams, Oasis and Hobbs, while Topshop, Marks & Spencer and Ted Baker are offering 40% off. Boohoo has discounts available of up to 80%, followed by 70% off at Missguided, and 50% off at Asos.
Deloitte estimates that the average discount will hit 50% or above by Christmas Eve, in a challenging trading period for retailers.
The audit and advisory firm has monitored the prices of 800,000 products online and in shops since 2011. Following the adoption of Black Friday in the UK, it seems to have affected longer-term sales. Prices have begun to fall further and further as Christmas approaches.
Lead Consumer Analytics Partner at Deloitte, Jason Gordon, said: “Retailers have faced a challenging year, as consumer confidence has continued to fall amid macroeconomic uncertainties. In addition, the introduction of Black Friday in recent years means consumers have also come to expect an increasing amount of pre-Christmas discounting. The result is a blending of promotions, one seeping into the next, and a steady price decline rather than a steep Boxing Day drop.
“With one shopping weekend left before Christmas, this week could see a tipping point in promotions.”