Fashion retailers are leaning hard on early discounting this year after a mild autumn and winter blunted demand for seasonal clothing.
Chains including New Look, Boohoo and Sports Direct are offering discounts of up to 70% ahead of Christmas Eve, while Next is launching its sale online this afternoon with reductions of up to 50%. Similar levels of discounting are being rolled out by Hobbs, Topshop, Primark and John Lewis. Marks & Spencer has so far resisted cutting fashion prices, although it is offering up to 40% off homeware and fragrance.
The weather has been a key headwind. With fewer cold days, sales of coats, knitwear and winter essentials have underperformed, leaving retailers with excess stock to clear. That pressure has coincided with weak consumer confidence and ongoing worries about the economic outlook.
Hopes of a last-minute high street rush have yet to materialise. According to MRI, footfall was down 4.5% year-on-year on Tuesday, with stronger activity in major cities such as London failing to offset weaker performance in towns and shopping centres. The longer-term shift towards online shopping continues to weigh on physical stores.
BDO’s latest sales tracker showed overall sales up just 1% among its sample of mid-sized chains, many of them fashion-led, as a surge in late online orders compensated for disappointing in-store trading.
Retailers now appear resigned to aggressive promotions as the price of clearing unsold stock in what has become a challenging festive trading environment.
