Every third person in Britain will join today's shopping spree known as Boxing Day, while retailers cut prices so that some of them might even make a loss.
Barclaycard economists estimate that 34% of the UK population will participate in celebratory sales, which is near 1.5 times more than last year’s 23%. Stores are ready to set discounts at as much as 90% from their initial price, looking for ways to persuade shoppers to spend more money. This is happening even when the bulk of biggest retailers’ margin of profit makes up 50% or less.
Post-Christmas sales period in 2016 saw a significant loss of appetite on the part of shoppers, which came after a long days of discounts that had begun much earlier than Black Friday, subsequently leading to today’s situation.
The survey of Barclaycard's also clearly showed that due to months of squeeze in 2017, a lot of people are waiting for the holiday sales to relieve the pressure on their budgets.
According to VoucherCodes and the Centre for Retail Research the Boxing Day will get over 30% of the British population to stores, anticipating that totally they will spend an unprecedented £4.3 bln, which is 12% more than last year. Some stores will likely offer discounts on Boxing Day way higher than during Black Friday.