Partner Article

Retailers ‘less desperate’ than last year

According to analysis carried out by PricewaterhouseCoopers LLP (PwC), less than half (43%) of high street retailers are currently advertising discounts or offering promotions such as three for two or buy one get one free. This compares to nearly two-thirds (62%) of retailers in the same week last year.

Average discounts being offered this week are also lower at 25% off, compared to 40% off this time last year when the grip of the credit crunch was at its tightest, and discounting was hotting up as Christmas drew nearer.

Bill MacLeod, partner and North East retail specialist, PricewaterhouseCoopers LLP, said: “It is encouraging to see that retailers appear to have more tightly managed stock levels and are therefore better prepared for Christmas this year, reducing the need to chase footfall and sales as aggressively as last year. I think this is also an indication of improving consumer confidence, with shoppers happy to spend money on presents or on themselves if they see a compelling reason to do so.

“The jury is still out on whether discounting will remain below 2008 levels as we get nearer to Christmas. Retailers are closely monitoring their daily and weekly sales figures. It all depends on how actual sales compare to budgets over the next few weeks, and we may see discounting levels creep up again.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .