The overindulgence of Christmas has been, yet the appetite to head out into the sales in London seems as big as ever. The competition for the first move advantage of cutting prices, led to many retailers beginning their sales in mid-December, with their margins being squeezed, to draw in footfall. This is a positive for the shopper to find bargains, but for many zombie-retailers the increased revenue in the short term will do little to change the midterm outlook. Having to entice shoppers with unbelievable discounts isn’t a long-term strategy for growth, and many analysts are predicting further big names from the UK high-street to go into administration in 2013.
The city remains quiet as many employees in have taken annual leave between the Christmas and New Year break. Concerns over the fiscal cliff loom, but with many traders not at their desk, liquidity and volumes are likely to remain thin, until 2013 begins and direction be taken from there.