Holiday Sales To Come Early
The holiday sales will start early this year including price cuts on Christmas day before the VAT rise.
However discounts are not set to be as generous as last year according to Don Williams, head of retail at accountancy firm BDO Stoy Hayward
The Debenhams were the first major high street chain to cut prices with a four day sale that began on Wednesday. Its campaign offers up to 25% off products and comes six weeks before the festive holiday.
Numerous retailers are expected to promote lower prices before the VAT increase.
VAT will return to 17.5% on 1 January, after being cut to 15% back in November 2008.
Early Sales
There will be bargains but not to the same sort of scale as last year Don Williams, BDO Stoy Hayward
Marks and Spencers were the first to offer discounts last year with their 20% off days, but that was in December.
Stores have used numerous promotions throughout the year to keep sale levels up during the recession.
Last Christmas saw major concern over the economy and the banking system this year there are signs of a recovery.
There will be bargains but not to the same sort of levels as last year.
VAT Increases Drive Sales
The VAT rise is also expected to increase sales before Christmas as consumers make the most of the lower rate. Germany, the last economy to increase it’s VAT rate, experienced a surge in sales in the weeks before the increase.
This suggests that many stores will start their January sales immediately after Christmas with the possibility of online sales on Christmas day itself.
Monday 7 December is forecast to be the busiest day for online Christmas shopping 12 days before the busiest day on the High Street, according to the Centre for Retail Research.
Comparison website Kelkoo recently polled its users, 72% of shoppers said they would use the Internet for Christmas shopping and 38% are intending to do most of their shopping online.
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Tags: Christmas Shopping, Festive Holiday, Holiday Sales, January Sales, Recession, Shoppers, Vat Rate
