The discounting of products looks set to hit record levels this Christmas as retailers push to shift stock after a slow start to the season.
Data from Deloitte shows pre-Christmas discounting is currently an average of 43.8% across all retail, but could top 50% by Christmas Eve for the first time.
The business consultancy stated that a combination of earlier sales, and a continuation of mid- and end-of-season autumn promotions into December, has created a long run up for pre-Christmas discounting, with prices having steadily fallen over this period.
Successful Black Friday promotions, which this year saw some of the highest ever sales volumes, have helped shift stock from shop floors. However, Deloitte highlighted that a pre-existing oversupply could see a tipping point reached imminently, as retailers discount further to shift goods.
Jason Gordon, lead consumer analytics partner at Deloitte, 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.”
