Pre-Christmas sales entice shoppers

10:35pm Thursday 20th November 2008

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Consumers ventured back to the high street as major retailers slashed prices in a pre-Christmas bid to breathe life into the ailing market.

Marks & Spencer stores were inundated with customers cashing in on a 24-hour 20%-off sale - the retailer's biggest one-day promotion for four years.

Widespread price-cutting on the high street comes as retailers voice concerns that trading this Christmas could be the worst for many years.

M&S executive chairman Sir Stuart Rose said of the sale: "It seems to have touched the spot. It's a riot."

Customers appeared to be spending most on Christmas gifts, wine and champagne, although "self-spending" items such as leather bags and cashmere jumpers were also selling well, she said.

Retail giants Debenhams and Bhs are also discounting stock this week. Analysts say consumers appear to be delaying their Christmas shopping, hoping to catch bargains as shops intensify their sales.

M&S spokeswoman Clare Wilkes said: "M&S customers are telling us they are feeling the pinch more than ever and they need some support to help make Christmas extra special."

Asked about speculation that the event would dilute sales leading up to Christmas, she said: "These are really unusual times and it's a very volatile and competitive environment and we need to trade through it. We need to compete for every share of the pound that is available to be spent."

Debenhams is in the middle of a three-day £200 million price-cutting campaign across every trading area in all its stores and online. A Debenhams spokesman said sale customers had queued outside the stores, which were "packed".

Debenhams deputy chief executive Michael Sharp said the retail sector was "staring into the face of the worst Christmas we have ever had". He said the final weekend before Christmas would be key and that many retailers would have gone on sale by then.