Discounting by retailers has hit an unprecedented level in the run-up to Christmas and even deeper price cuts are expected.
Discounting stands at 43.8% across retail – 0.2% more than the same time last year – and could exceed 50% by Christmas Eve for the first time, research by Deloitte has found.
Deloitte said a combination of mid- and end-of-season autumn sales running into December, along with a record Black Friday promotion, “set the precedent for deepest-ever pre-Christmas discounting”.
Discounts on the high street range from 8% to 78% and are especially prevalent among mid-market clothing retailers, Deloitte’s MarkdownEdge analysis revealed. Reductions among such retailers average 30% and could reach 55% by Boxing Day
The report said Black Friday helped move stock but “a pre-existing oversupply could see a tipping point reached imminently, as retailers discount further to shift goods”.
Deloitte lead consumer analytics partner Jason Gordon said: “Retailers have faced a challenging year, as consumer confidence has continued to fall amidst 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, reminiscent of Christmases past.
“With one shopping weekend left before Christmas, this week could see a tipping point in promotions.”
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