Almost half of retailers in Yorkshire are planning to slash prices before Christmas, says survey

A poll of 250 retailers by Inventory Planner found that 44 per cent of respondents in the region said they would be cutting prices to boost sales at a time of peak trading.

The poll also found that 45 per cent of retailers have surplus goods they are desperate to offload, with fashion, toys and gifts, baby and toddler the sectors struggling the most.

The survey found that 59 per cent of retailers in this situation admit there will be dangerous ramifications for their business if they fail to sell off their excess stock.

A quarter said they have already started to suffer, after being forced to write off excess stock as a loss this year.

A spokesman said: “In addition to slashing the prices of products, retailers are likely to resort to offering freebies with other purchases, bundling products together, and even giving away unwanted items.

“But while this is a major concern for many businesses in the retail industry, major price cuts will likely be music to the ears of consumers in the wake of the ongoing cost-of-living crisis.”

Further research of 2,000 adults who celebrate Christmas – also commissioned by Inventory Planner – found that 21 per cent of consumers in Yorkshire said they are ‘depending’ on businesses to discount goods ahead of the festive period.

Nick Shaw, a spokesperson for the inventory forecasting and planning software for businesses, said: "Having excess stock is a problem because products start to decrease in value after a while.

“Among other things goods can start to deteriorate and perish, go out of fashion, become redundant and more.

“Excess stock also means businesses have less room to fill their warehouses with new stock, goods which might be in demand, as well as less cash to buy new goods.”

The study also found retailers with excess stock estimate their surplus to make up 19 per cent of their overall stock holdings, with the value of this totalling almost £66,000.

The spokesman added: “Understandably, 59 per cent are concerned about the ramifications of this on their firm’s cash flow.

“As such, 45 per cent fear they’ll be left with no choice but to liquidate much of their superfluous goods.”

Inventory Planner’s Nick Shaw added: “Keeping track of stock, knowing when to replenish goods and when not to, can prove to be very complex.

“And this process is only made harder by what’s been happening in recent years, whether that’s the pandemic or the cost-of-living crisis.”