January sales may not end this year

Officials have stated that the January sales this year are likely to extend far beyond the traditional month, and will most likely go on for the rest of the year, giving consumers the chance to pick up bargains all around the year.

With the recession kicking in and many big name retailers going into administration, the High Street is now packed with shops that are offering huge discounts on all sorts of products and items, from entertainment and household gadgets to clothes and furniture.

With the effects of the recession and with many consumers worried about their jobs officials have predicted that many will be cutting back on the amount that they spend on a variety of items, and because of this the only way that retailers will be able to stand a chance of weathering the recession is to offer huge discounts on the items that they sell in the hope that this will tempt customers into spending money in the current financial climate.

One official stated: ‘There’s no indication that fundamentals are going to change so customers will go on being reluctant to spend and retailers will have to go on offering big discounts and promotions in order to tempt them in, which is very difficult for retailers. The key question though is how much people are actually spending. They are being very cautious. Generally speaking, retailers have had to do an enormous amount to tempt people in. It’s unlikely that the total value of sales will reach last year’s.’

The results of a recent ICM poll showed that over 85 percent of consumers are planning to cut back on spending now that the New Year has arrived, and with so many people determined to tighten their belts even these huge discounts may not save some retailers from going under, with a number of big names such as Woolworths and Zavvi already having gone into administration.

Tags: retail sales, recession, poll, financial climate, janauary sales