UK shoppers winning Christmas war of nerves
Discounting starting to take hold
December 13 2003
Despite predictions of a last minute rush, UK shoppers are starting to see the benefits of discounting as retailers move to ensure they can clear Christmas stock.
In the wake of this week’s warning by discounter Matalan that sales have been low, some analysts have seen signs of heavy promoting of Christmas lines as evidence of a general concern among retailers.
Seymour Pierce analyst Richard Ratner tolf news agency Reuters: “It’s horrid. Although we think that there will be a last minute rush, there will in most cases be large residual stocks to clear.”
Delia Bourne, marketing director at toy retailer Hamleys told Reuters: “It’s slower than we would have hoped.”
However, Dixons has said its half-price gifts and cut-price CD promotions had been planned as part of its Christmas strategy. Similarly, Argos said a half-price toy sale was also planned.
Clothing retailers undoubtedly saw a slow start to sales during mild weather, and a four-day 20 per cent off campaign at Matalan joins clothing promotions being run by Debenhams, House of Fraser, Bhs, and Marks & Spencer.
Like clothing retailers, entertainment retailers such as WH Smith and HMV are also having to deal with the greater share of these markets being taken by supermarkets such as Tesco and Asda.
SPSL, which produces the Retail Traffic Index, earlier this week advised retailers to hold their nerve, with its figures showing Christmas shopping activity climbing week-by week of December.
