Desperate stores are slashing prices by up to 80% in a high street bloodbath. Sales that kicked off on Black Friday last month are expected to continue well beyond Christmas.
It is feared some big chains could even run out of cash.
Price tracking of 800,000 products by accountants Deloitte shows the average discount on sale items is already 44%.
However, retail analysts still expect footfall at stores to be 4% lower than last year.
Seven out of 10 high street and online stores are expected by consultants PwC to be launching sales next week. It is the “toughest retail market anyone has ever seen”, according to retail analyst Richard Hyman.
He added: “We don’t want to blame Brexit for too much. But the inescapable truth is that it is definitely having an impact. Christmas 2018 will come very late, and fail to deliver the respite many in the industry need.
“Most retailers will enter 2019 with less fat than needed to see them through the weakest trading period of the year. It’s going to be a bumpy ride.”
The dire trading conditions could herald more store closures and further damage to high streets.
Mike Ashley, the Sports Direct tycoon who bought House of Fraser out of administration, is making plans to close many of its outlets. He has also suggested that Debenhams cannot survive without an injection of cash.
Both department store chains are promising savings of up to 60%. Their rival John Lewis has been dragged into the fray under its ‘Never Knowingly Undersold’ price promise.
Other household names such as Gap, H&M, Laura Ashley, Next, Hobbs and Argos are promoting winter sales, mega deals and clearance stock.
Bon Marche issued a profits warning this week and Primark, a leader in cheap fast fashion, has warned of tough trading conditions.
Festive lights decorate New Bond Street as people shop in central London yesterday.
