SuperGroup boss Julian Dunkerton says discounting at Christmas tarnishes a product's value

Dunkerton said that retailers that decided to discount made the wrong decision as it made a concerted effort to reduce its clearance activity.

He said: “People that discount prior to Christmas fall foul of what Christmas is all about. People don’t want to give a gift that has had its value tarnished [by discounts].”

Both Debenhams and Marks & Spencer said there was a “unprecedented level” of promotions across Christmas.  

Dunkerton said that having confidence in your pricing strategy and knowing how much shoppers are prepared to pay for products is critical for retailers to hold their nerve and not discount.

Dunkerton said that shoppers had chosen Supergroup brand Superdry because of its product. “Our product is getting better and better in terms of design, quality and price.”

He said that broadening its range had helped attract new customers to the trendy brand.

“We’re increasing our customer base and bringing in a new sophisticated customer into store. We’re maintaining our customer base but product like Timothy Everest tailored jackets are attracting a new demographic,” he said.

SuperGroup said it was “on track for the full year” as like-for-likes edged up 1.3% in its third quarter. The retailer said sales were suppressed as it reduced its level of clearance activity on eBay to focus on protecting margins.

Supergroup, owner of trendy brand Superdry, said that, adjusted for the impact of eBay, like-for-likes rose 4.9%. Retail sales soared 18.2% to £113.8m and group sales jumped 22.1% to £141.1m in the 13 weeks to January 26.