Business & Investment

High Street stores fight to survive and lower prices

Shoppers will find a “wall-wide” discount on January sales as High Street suffers from “the biggest hangover ever”

  • Due to the turmoil caused by the pandemic, brick and mortar companies are struggling to shift their products.
  • Many will lower prices even further as they try to scrape in cash to get over them until spring
  • Shops in the Tier 4 region lose millions of pounds each week after being forced to close.

According to experts, High Street has been hit by “the biggest hangover in history”, so shoppers will get a “wall-wide” discount on January sales.

Due to the turmoil caused by the pandemic, brick and mortar companies are struggling to shift their products.

Many will lower prices even further as they try to scrape in cash to get over them until spring.

Bargains: Shops in the Tier 4 region lose millions of pounds each week after being forced to close.

Shops in the Tier 4 region lose millions of pounds each week after being forced to close.

On Boxing Day, footfalls were down 60% compared to the same day last year, and at Tier 4 locations where non-essential shops are closed, Springboard said. This means that in addition to the £ 8bn loss of sales when the “non-essential” retail store closed in November, experts clear inventory even with a significant price cut in December and 24-hour trading. Said not enough.

Retailers such as Next and Primark have already “hibernated” a pile of spring and summer clothing sold in 2021, which was not sold at the time of the first blockade. Richard Heymann, an independent retail analyst, said: The hangover they have ever seen.

“They need to cut prices significantly to get a chance to shift inventory. You’ll see wall-to-wall discounts,” said Andrew Busby, founder of Retail Reflections. I am. The chain had to guess again what the restrictions were.

“There are so many uncertainties, how can retailers plan? It’s a complete nightmare to know which inventory to put where. Sales and cash are more than ever. Important-You take whatever cash you can get. There will be more sacrifice margins than ever before. ”

Retailers were more optimistic as they made inventories decisions in early summer when the country broke out of its first blockade.

Many stores were expecting a second wave in the fall, but the early success of social distance measurements in supermarkets meant they weren’t expecting another national blockade. Just days before the November closure in the UK, the FTSE 100 giant Next announced a “downside” scenario based on a two-week closure.

Excessive clothing led to a significant discount rash in December, especially in fashion chains. Phase Eight offered customers a 50% discount, and M & S and John Lewis offered a 30% discount on transactions booked for sale in January.

These discounts have been extended after Christmas and the chain offers up to 75% off some items.

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High Street stores fight to survive and lower prices

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