Brit shops slash prices by up to 80 per cent in desperate bid to survive… as chains fear they’ll run out of CASH
Deloitte claims the average discount is already at 44 per cent on the high street with this expected to rise to 52 per cent by Boxing Day
HIGH street stores are being forced to slash their prices by up to 80 per cent in a desperate bid to get shoppers through their doors.
Panic sales are expected to continue well beyond Christmas and it is feared some big chains could go bust if their profits don’t improve.
Retailers including H&M, Hobbs, Next and Laura Ashley began promoting winter sales, mega deals and clearance stock weeks ago in a bid to boost figures.
Bon Marche issued a profits warning earlier this week, with Primark warning of tough trading conditions.
The average discount figure for most brands will be around 52 per cent from Boxing Day, according to accountants Deloitte.
And experts predict footfall on the biggest shopping day of the season to be four per cent lower than last year.
Brexit was “inescapably” having an impact, he said, adding: “Christmas 2018 will fail to deliver the respite many need.
“Most retailers will enter 2019 with less fat than needed to see them through the weakest trading period of the year.”
Speaking of the high street "bloodbath", he added: “We don’t want to blame Brexit for too much. But the inescapable truth is that it is definitely having an impact.”
Consultants PwC expect post-Christmas sales to be launched in seven out of ten high street and online stores as early as next week.
An over-supply of unwanted stock, caused in part by the mild winter weather, has driven retailers to record levels of discounting, according to Deloitte consumer business partner Jason Gordon.
The news comes just months after Sports Direct tycoon Mike Ashley plucked House of Fraser from administration but immediately announced plans to close more than half its stores.
He has also suggested that high street favourite Debenhams could see a similar fate without a hefty cash injection.
Deloitte has found that retailers with a physical presence on the British high street are losing 40 per cent of festive non-food spending compared to their online rivals during the festive period.
While the rest of the year saw a gap of just 20 per cent, an increase in Black Friday spending has also seen a significant reduction in festive shoppers.
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