New data: Retailers to start Christmas discounting earlier this year

New data from Lloyds Bank has revealed that UK retailers are preparing to start Christmas discounting earlier this year, with four in five also expecting a stronger festive trading period than in 2024.

According to Lloyds’ latest Business Barometer, three in five retailers plan to launch promotions earlier in 2025, while 40% intend to go deeper with discounts and 37% expect to extend money-off offers across more product lines.

However, half of retailers expect consumers to be more price-conscious this Christmas, with more than a third saying shoppers will be more focused on value than ever before.

Results of the survey show that retailers are preparing a wide range of promotions and new launches to attract customers. Some 43% plan to introduce personalised products and marketing campaigns, 39% are testing social media marketplaces such as TikTok Shop, and 30% intend to host in-store events.

Meanwhile, four in five retailers (81%) are predicting higher sales volumes, with nearly a third (31%) forecasting double-digit year-on-year growth.

Aled Patchett, head of consumer and retail at Lloyds, said: “Discounting is always part of the Christmas playbook, but starting sooner shows how hard brands are working to win price savvy shoppers this year.

“The trick is getting pricing right, deep enough to capture demand and loyalty, smart enough to protect margins, while keeping the working capital in place to fund extra stock and staffing through the peak.”

Lloyds said shoppers can expect deals dropping well before Black Friday, especially on gifting staples and big ticket items. They are also likely to benefit from deeper, broader offers with more categories included, not just headline lines. Alongside this, value is becoming increasingly personalised, with loyalty bundles, price-match and targeted vouchers landing directly in inboxes and apps.

The survey also found that many retailers are experimenting with social shopfronts such as TikTok Shop and other marketplaces to reach deal-hunters where they already spend their time scrolling.

In addition, late-night shopping events, exclusive product drops and family-friendly activities are being designed to draw shoppers into stores and create a sense of occasion.