Shops start Christmas price cuts in bid to boost sales

26/11/2008

Britain's retailers are hitting back against the credit crunch - by slashing prices in an attempt to boost sales.

Many stores are introducing snap promotions with deep discounts on certain goods in order to attract new business, the Daily Mail reports.

Tesco launches a new 50 per cent off promotion on certain lines today, House of Fraser is planning a 40 per cent price reduction offer, while Marks & Spencer and Debenhams are to reintroduce "discount days" - big, heavily-promoted, one-day sales.

The government has also taken action to encourage more people to spend - and will cut VAT on most items from 17.5 to 15 per cent from December 1st.

Speaking to the newspaper, Dr Tim Denison at analysts Synovate Retail Performance said that he was doubtful over how effective these moves would be in the run-up to the festive season.

"I envisage more of us abandoning the highly-commercialised rumpus that has become Christmas Present and returning to the back-to-basics of Christmas Past," he commented.

"This will see parents and grandparents provide for young children in their families first, and, if necessary, forgo so much spending on each other. People will think twice about how much they spend on the Christmas trappings this year."

Tags; Income Worries and Debt, Credit Card Lifestyle,

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