Pre-Christmas discounts reach record high

British consumers will be able to take advantage of another year or record pre-Christmas discounts by retailers with price cuts already averaging 43%.

According to the latest research from Deloitte pre-Christmas discounts have reached a record level for the sixth year in a row and average discounts are expected to reach 54% by Christmas Eve, which this year falls on a Saturday.

Deloitte has based its analysis on 300,000 items currently on sale in the UK and says average discounts are 1.5% greater than they were this time last year.

The discounting comes on the back of a tough year of trading for retailers. The weather has been unseasonably warm leading many consumers to hold off on big ticket fashion items such as outerwear and boots and Black Friday was hugely successful meaning many consumers have already done their holiday shopping.

Current economic conditions remain consumer, as opposed to retailer, friendly, said Jason Gordon, consumer analytics partner at Deloitte.  “This is the sixth year in a row that we have seen ever increasing discounts. Such a long precedent has led to consumers becoming conditioned to expect substantial discounts in the run up to Christmas," he said.

"This long-term trend, combined with the current consumer-friendly economic conditions of low inflation, high employment and high disposable income, will provide retailers with the perfect opportunity to offer deep discounts in order to shift unwanted stock," Gordon added.

Gordon also noted that consumer spend was being increasingly diverted to experiences and entertainment and away from products and said retailers would be keen to clear unwanted stock ahead of an uncertain 2017.

"The fact that we have seen such deep discounts so early is an indication of the level of nervousness from the high street. Economic uncertainty in 2017, particularly around how increasing inflation will affect consumer confidence and spending, has encouraged retailers to err on the side of caution. Deep discounts, calculated using increasingly sophisticated analytical tools, will help retailers shift stock and remain competitive before the uncertainties that lie ahead," Gordon explained.

In fashion both of the major luxury etailers, Net-A-Porter.com and Matchesfashion.com have gone on sale today - 10 days before Christmas - while many department stores have been holding sale previews and are expected to go on full sale in the coming days.