In the wake of Black Friday – which has distorted the traditional Christmas shopping peak retailers normally noted around this time – discounting may lose a little of its traction with shoppers who have come to expect lower pricing.
Commenting on Boxing Day retail sales, Paul Martin, UK Head of Retail at KPMG, said:
“After a well-earned break, retailers will once again reboot come Boxing Day – ready and eager to showcase any of those items left off Christmas wish lists and make the most of what remains of the golden quarter. Less welcome however, will be the flurry of returns stores will undoubtedly receive, which will begrudgingly need to be redistributed at the retailer’s expense. The weather too will play a hand in shaping how successful the day will be and shoppers’ willingness to hit the high street.
“In the wake of Black Friday – which has distorted the traditional Christmas shopping peak retailers normally noted around this time – discounting may lose a little of its traction with shoppers who have come to expect lower pricing. Retailers will therefore have to promote creatively, whilst behind the scenes making operation as efficient as possible in order to maximise profit margins.
“With recent retail commentary pointing to a boost in retail sales in November and early December, it is likely Boxing Day will prove encouraging for retailers. Increasingly savvy shoppers will be anticipating the price rises that are looming on the horizon as inflation kicks in. We may even see some shoppers look to make big-ticket items in the final days of 2016 with this in mind.”
For media enquiries only, please contact:
Jess Liebmann, KPMG Corporate Communications
T: 0207 311 3245
M: 07551 135778
KPMG Press Office:
T: +44 (0)207 694 8773
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.