Retailers are being forced to reduce the prices of Olympic Games souvenirs by up to 80% following poor demand from shoppers.

Pricing intelligence company Profitero, which monitors competitor prices for millions of products across retail websites, said that retailers such as Argos, John Lewis, Sainsbury’s and WH Smith have all reduced prices of Olympic products. 

Profitero said some retailers started to cut prices before the Games kicked off.

It found a £2.50 Team GB tax disc holder selling for 48p at Morrisons. Sainsbury’s has reduced some Olympic merchandise, including a London 2012 Union Jack Brights Teapot, which is selling for £7, down from £14.

The news comes as Retail Week revealed last week that Poundland claimed to have been approached by official Olympics merchandise suppliers keen to offload product following weak sales.

The 2012 organising committee had estimated that £1bn would be made from the sale of Olympic souvenirs.