UK NEWS

ELBOWS AT THE READY FOR SALES OF THE CENTURY

Argos are among the stores with bumper discounts

Saturday December 22,2007

By Graham Hiscott, Consumer Editor

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STRUGGLING stores are resorting to “brutal” price cuts in an attempt to boost dismal pre-Christmas sales.

Shoppers heading out for last-minute presents over the next three days will enjoy a bargain bonanza.

Some retailers have slashed prices by as much as 90 per cent in a desperate bid to boost trade.

The flood of promotions mean high streets across Britain are more reminiscent of the traditional January sales.

Today will be vital for retailers, many of whom are counting the cost of a lacklustre festive period.

A recent surge in shoppers failed to keep up momentum last week, figures revealed yesterday.

Some shops are now launching an “open all hours” campaign to persuade shoppers to splash out.

Many major store chains last week stayed open until 10pm but this weekend the trading times are being extended even further.

And to make the most of strict Sunday trading laws, hundreds of stores will open early tomorrow to offer customers half an hour of “browsing time” so that trolleys can be filled before the tills open.

Retailers hope the longer trading hours will encourage shoppers to take advantage of the biggest-ever round of pre-Christmas sales.

Topshop, French Connection, Oasis, Dorothy Perkins and Mango are all offering discounts of up to 50 per cent, while fashion chain Gap has gone further by cutting some of its prices by 75 per cent.

Argos, HMV, Virgin and Waterstones are among the others with bumper discounts.

Meanwhile, sports retailer JJB has dropped its prices by up to 90 per cent to get rid of this season’s stock. The deal excludes footwear.

Research by financial experts Ernst & Young found retailers have slashed prices by an average of 37 per cent in the pre-Christmas sales – up from 33 per cent in 2005.

It described the mark-downs on DVDs, CDs and books as especially “brutal”.

But despite attempts to coax shoppers back on to the high street, many shoppers are spending less this year.

Last Sunday saw an 8.9 per cent annual increase in the number of people hitting the shops, according to analysts Footfall.

But the crowds stayed away in the week, culminating with year-on-year fall of 8.6 per cent on Wednesday.

It came as official figures showed retailers had a less-than-impressive month of trading in November.

Sales rose just 0.4 per cent on October, according to the Office for National Statistics (ONS).

Gavin George, head of retail at Ernst & Young, said: “The credit crunch, falling house prices and the earlier succession of interest rate rises have combined to eliminate the feel-good factor among most consumers.”