Why are there so many pre-christmas sales?
Shoppers are seeing a boom in pre-Christmas sales as retailers try to lure them back to High Street shops. Squeezed by rising costs and online competition retailers are turning to sales and promotions to tempt back shoppers.
Shoppers are seeing a boom in pre-Christmas sales as retailers try to lure them back to High Street shops.
Squeezed by rising costs and online competition retailers are turning to sales and promotions to tempt back shoppers.
Greg Harwood, director at analysts Simon-Kucher said: "We've seen a spiral of promotions year after year.
"And it gets more and more intense towards the end of the financial year and they have to produce a profit."
Research group Springboard estimates that footfall, the number of shoppers passing through shop doors, will fall 4.2% over the crucial December period.
But Springboard marketing and insights director Diane Wehrle warned: "Shoppers are getting immune to discounts."
"They aren't content with 10% off. They want 20% or 30% and that's dangerous for retailers."
Warnings
There have been warnings of a slump in sales from leading brands including Primark, Ted Baker and John Lewis.
Costs have been pushed up by the rise in the Living Wage, the apprenticeship levy, rising rents and logistical costs, like warehousing and shipping.
Richard Perks, retail analyst at the research group Mintel said: "There have been some retailers starting sales at the beginning of December - that is a real sign of distress."
Mr Harwood said: "Retailers are saying let's promote more and more to get people back to the High Street. It may even mean they are making a loss on some items but they are then hoping to use traditional in-store merchandising to get people to spend more once they are in the shops."