U.K. retailers step up discounts ahead of holiday spending peak

U.K. retailers are offering discounts of as much as 78 percent to win holiday shoppers as pre- Christmas price reductions increase for a fourth straight year, according to analysts at Deloitte LLP.

The level of discounts is "marginally deeper" than a year ago, Jason Gordon, consumer business partner at Deloitte, said in an e-mailed statement. Price cuts that currently start at 8 percent are likely to grow in number and size, according to Deloitte, reaching as much as 90 percent after Christmas.

Deloitte's findings are likely to stoke concern over retailers' profitability at their busiest time of the year. Many clothing sellers were left with large quantities of unsold coats and sweaters after an unseasonably mild fall.

Deloitte predicts that retailers will make their final big pre-Christmas discounts on the final weekend before the holiday.

"Looking beyond Christmas, at the current sales velocity we will have noticeably deeper discounts from Boxing Day," Gordon said.