Christmas has come early for shoppers as a string of high street chains launch their festive sales early – but it’s not a good sign, experts have warned.
Shoppers looking to finish up their Christmas shopping will see discounts across the industry, including at Debenhams, Harrods, Sweaty Betty and Liberty.
Some stores are offering huge savings usually reserved for Boxing Day, with up to 70 per cent off products.
But the short-term gain for consumers is actually a sign of a struggling sector, industry analysts say.
Rachel Reeves‘ Budget has brought misery to many retailers, with a rise in employer’s national insurance and the national living wage.
The British retail Consortium estimates the industry is facing an extra £7billion in costs as a result.
Last week Frasers group, which owns brands including House of Fraser, Sports Direct and Evans Cycles, said the October Budget had been a ‘punch in the face’ that came just before the vital festive season.
At its luxury stores Frasers Group is offering 30 per cent off designer brands such as Balenciaga and La Mer.
Shoppers looking to finish up their Christmas shopping will see discounts across the industry, including at Debenhams, Harrods, Sweaty Betty and Liberty
Harrods is among the stores already offering sales in early December – in a bad sign for the retail industry
Retail sales fell by 5.8 per cent in November compared to the same month the year before
Clive Black, analyst at Shore Capital, told the Telegraph that sales this early in December – typically one of the busiest periods for shoppers – are a ‘real signal of distress’.
He said: ‘If you’re discounting in the first week of December, then that is a real worry. The tide went out in October and November, and indeed, the week into Black Friday by common consent was an absolute disaster.’
Last month Black Friday saw a surge in online sales compared to the rest of the year, but it was not enough to put the industry at ease.
Mr Clark added lots of businesses are finding retail ‘really tough’, describing 2024 as a ‘real slog’ which retailers are ‘glad to see the back of’.
Last month retailers suffered their worst slump in sales since the pandemic, with sales down 5.8 percent compared to 2023.
Online sales fell by 7.8 percent while in-store sales dropped by 5.5 percent.
The negative outlook isn’t just affecting businesses but employees as well.
Figures from job search platform Adzuna found that the number of vacancies advertised as Christmas jobs had fallen to 21,576 in November, down from 24,699 in the same month last year.