Forget the sales, Christmas shoppers could be getting huge discounts this side of 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.
A relatively mild autumn means retailers are sitting on a mountain of coats, woollens, scarves and boots.
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.”
