Christmas shoppers set to enjoy record discounts ahead of Panic Saturday
Christmas shoppers are set to enjoy a fifth year of record discounting with retailers expected to offer up their best bargains this Saturday, analysts have predicted.
Discounts currently average 41.8% and will increase to 45% by the weekend - the deepest since 2008 - after the mild autumn and unexpectedly low Black Friday sales on the high street left retailers facing an "uphill battle" to shift stock, Deloitte said.
The figures will be good news for the 12.6 million Britons expected to hit the high street on so-called "Panic Saturday" - although the figure is slightly down on the 13 million who turned out on the same day last year, according to VoucherCodes.co.uk and the Centre for Retail Research.
But while spending on Saturday is expected to be slightly lower - £1.1 billion in stores compared with £1.2 billion last year - the day is predicted to kick off a £6 billion six-day spending spree in the run-up to Christmas - 23% more than the same period last year when Christmas Day fell on the Thursday.
Five clear days between Saturday and Christmas Day means shoppers are also expected to rely on deliveries of online purchases.
Jason Gordon, consumer business partner at Deloitte, said: "Compared to 2014, there is already a noticeable increase in both the volume and value of discounts in the run-up to Christmas this year.
"Whilst this is good news for consumers looking to grab a bargain, it is a clear sign that retailers are being faced with what is now an annual uphill battle."
Deloitte analysed the prices of more than 1.9 million products and found that the "very wide spread" of discounts range between 5.6% and 90.9% and currently average 41.8%.
It believes the discounts will grow in number and size and average more than 53% after Christmas.
Mr Gordon said: "Christmas falls on a Friday this year, and, given the disappointing sales so far, we would expect the majority of retailers to launch their final big pre-Christmas discounts on the Saturday before Christmas.
"Limited Sunday trading hours on the Boxing Day weekend may also lead to slightly deeper-than-usual discounts in the post-Christmas sales window."
VoucherCodes managing director Claire Davenport said: "Although we're expecting slightly fewer shoppers on the streets this Saturday, 12.6 million Brits is still a significant turnout and kicks off almost a full week of last minute spending, so retailers need to make sure they're prepared in order to capitalise on this pre-Christmas boost and offer customers the most seamless experience possible during this busy period.
"Big brands seem to be kicking off Christmas earlier every year with festive adverts and discount shopping days fuelling spending, but that doesn't stop Brits finishing their shopping at the last possible minute with billions to be spent on and offline in the final week before the big day."
