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Easter sales 'may harm retailers' | Easter sales 'may harm retailers' |
(about 7 hours later) | |
By Maryam Moshiri Business reporter, BBC News | By Maryam Moshiri Business reporter, BBC News |
Easter weekend is traditionally one of the busiest in the year for the High Street and this year marks the first Easter sales since the start of the recession. | |
M&S is among High Street retailers offering big discounts | M&S is among High Street retailers offering big discounts |
Many shops are offering their biggest discounts so far to get us to part with our cash. | Many shops are offering their biggest discounts so far to get us to part with our cash. |
While price cuts of up to 70% may sound good for consumers, there are warnings that stores may be doing damage to their business that could last long after the recession is over. | While price cuts of up to 70% may sound good for consumers, there are warnings that stores may be doing damage to their business that could last long after the recession is over. |
This year, most of the big-name retailers are going that extra mile to get the shoppers in. | This year, most of the big-name retailers are going that extra mile to get the shoppers in. |
Marks and Spencer is holding its traditional Easter sales, with 50% off. But on top of that, over the past six months, it has held two one-day sales, in an effort to lure shoppers in. | Marks and Spencer is holding its traditional Easter sales, with 50% off. But on top of that, over the past six months, it has held two one-day sales, in an effort to lure shoppers in. |
House of Fraser has also been holding its own events - they last two days and also give big discounts to customers. | House of Fraser has also been holding its own events - they last two days and also give big discounts to customers. |
We are seeing more discounts, deeper discounts, more widespread discounts at Easter than we've seen for a very long time Richard Dodd, British Retail Consortium | We are seeing more discounts, deeper discounts, more widespread discounts at Easter than we've seen for a very long time Richard Dodd, British Retail Consortium |
Debenhams is one of the biggest discounters - its Blue Cross sale, last year, lasted one day. This year, it lasts longer and gives up to 70% off. | Debenhams is one of the biggest discounters - its Blue Cross sale, last year, lasted one day. This year, it lasts longer and gives up to 70% off. |
It all sounds good for shoppers, but what difference does it make to the way people shop? | It all sounds good for shoppers, but what difference does it make to the way people shop? |
Bryan Roberts from analysts Planet Retail says: "Many consumers are actually expecting these events now, so they are deferring purchases and waiting for these hefty discounts. | Bryan Roberts from analysts Planet Retail says: "Many consumers are actually expecting these events now, so they are deferring purchases and waiting for these hefty discounts. |
"There's no need for them to pay full price for any of these products any more, so I think long term, retailers could be damaging the sustainability of their business models." | "There's no need for them to pay full price for any of these products any more, so I think long term, retailers could be damaging the sustainability of their business models." |
Hurting the brand | Hurting the brand |
That's an opinion shared by brand expert Graham Hales from Interbrand. | That's an opinion shared by brand expert Graham Hales from Interbrand. |
"If you're not seen as being a discounter," he says, "it's quite a difficult message to convey within your brand. | "If you're not seen as being a discounter," he says, "it's quite a difficult message to convey within your brand. |
Constant sales may be eroding shoppers' willingness to pay full price | Constant sales may be eroding shoppers' willingness to pay full price |
"So it's quite an uncomfortable experience for the brand and it probably leads to an erosion of brand value over time. | "So it's quite an uncomfortable experience for the brand and it probably leads to an erosion of brand value over time. |
"For consumers, it just teaches them to shop for discounts and bargains." | "For consumers, it just teaches them to shop for discounts and bargains." |
That may be so, but the retailers believe that this year, they have little choice but to cut prices. | That may be so, but the retailers believe that this year, they have little choice but to cut prices. |
Richard Dodd of the British Retail Consortium says it is a tough time for the High Street. | Richard Dodd of the British Retail Consortium says it is a tough time for the High Street. |
"I think we are seeing more discounts, deeper discounts, more widespread discounts at Easter than we've seen for a very long time," he says. | "I think we are seeing more discounts, deeper discounts, more widespread discounts at Easter than we've seen for a very long time," he says. |
"And that's what retailers are having to do - it's been a really difficult first quarter to the year." | "And that's what retailers are having to do - it's been a really difficult first quarter to the year." |
So it looks like this could be a happy Easter for shoppers with cash and an eye for a bargain. | So it looks like this could be a happy Easter for shoppers with cash and an eye for a bargain. |
But with the long-term possibility of consumers driving down prices even further, and retailers suffering as a result, the fear is that we could all end up paying for it. | But with the long-term possibility of consumers driving down prices even further, and retailers suffering as a result, the fear is that we could all end up paying for it. |
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