Retailers slash prices to six year low
28 December 2014 - 08:56 by Graham Miller
The sales which began on Boxing Day saw prices dip to their lowest point since 2008, according to Deloitte.
The main cause of this unprecedented array of discounts was the unseasonably warm weather that the UK experienced throughout the autumn, meaning that many of the winter goods that retailers had on offer were not sold in the volumes they expected.
The Guardian reports that fashion chains and clothing retailers offering safe shopping online were especially impacted by the weather, meaning that there are warehouses full of warmer garments sitting unsold, thus necessitating a flash sale with major discounts.
The reason that prices have hit their lowest point since 2008 is that the start of the financial crisis dented consumer confidence and necessitated similar discounting. These outside influences are rapidly felt in the retail sector and, at the moment, it looks like consumers are the beneficiaries.
The spectre of the internet is also hanging over the retail sector at this time of year, with spending via safe shopping online reaching record levels. Plus the availability of e-commerce sites throughout Christmas and Boxing Day allow people to move from buying gifts to spending the tokens and cash they received from friends and family.
Boxing Day itself has long been the point at which traditional retailers initiate sales, but for companies including John Lewis, it was deemed prudent to jump the gun and make major discounts available from December 24th.
While retailers are having to bend and flex as the industry which they occupy morphs to meet the needs of consumers, people who are actually doing the buying can get lower prices and more convenient service if they choose to shop online, rather than heading to a bricks and mortar store at this time of year.