Major retailers in Christmas price cutting frenzy
November 16, 2009
Many major retailers are planning to aggressively slash the price of goods on their shelves in the run up to Christmas. However experts are warning customers to buy now as the sales are unlikely to last into the New Year. Supermarket giants such as Asda and Tesco say that they will be reducing prices on a range of products. Chief financial officer at Asda, Judith McKenna said that she thinks the battle for customers will see shops creating one of the most competitive Christmas periods for years as customers seek out the best quality products at the lowest prices.
Stephen Robertson of the British Retail Consortium says that consumer confidence has been on the rise since the beginning of the year and that the BRC estimate that households now have around eleven percent more cash to spend this year than they did last Christmas. Robertson goes on to predict a shopping frenzy on the high streets as stores cut prices.
Analysts say that retailers will want to encourage customers to spend before the VAT rate goes back up to 17.5 percent again in January. Other experts say that the large retailers will be looking at the success of discount stores such as Aldi and Lidl and wanting to discount their prices to get in on the action.
Marks & Spencer is hoping that its penny bazaar which sees products such as mugs and underwear going for as little as a penny will be successful for charity. Asda say they sold out of a dolls house going for £35.00 within a few days of it being put onto shelves.
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