Shoppers set for bumper Christmas as retailers slash prices

CHRISTMAS shoppers in the West Midlands could be set for a bumper festive period as retailers slash prices in a bid to lure people back into their stores.

The big freeze has hit stores hard at what is traditionally their busiest time of the year and with worries about cutbacks and unemployment, many retailers are desperate for business.

For the past three years, PwC has conducted a survey of 100 retailers from around the country. The research gauges how keen retailers are to attract footfall to boost sales in the run up to Christmas.

Last week PwC found that 54% of high street retailers were on sale or advertising promotions in their shop window such as 3 for 2. This compares to 60% in 2009 and 75% in 2008. Average price discounts being advertised at the weekend were 39%, compared to 38% at the same point in 2009 and 45% in 2008.

Andy Lyon, partner and retail expert at PwC in the Midlands, said: “The reduced level of promotional activity, as compared to last year, is an indication that retailers are feeling more confident than they have for the last couple of years.

“However, as the cold snap has taken hold, and shoppers have stayed indoors, retailers are responding by ramping up promotions in an effort to attract footfall at the weekend.”

He said a fresh bout of discounting and promotional activity was expected to take place during the next few weeks.

“There is a perception that Christmas is coming later this year, due to the full week run up to Christmas Day, so shoppers may decide to hold off for a while longer, waiting for the bargains to come. As a result we could see a festive frenzy during the week before Christmas as shoppers scramble for those last minute bargains,” added Mr Lyon.