High Street stores slash prices in desperate bid to shift unsold summer stock

Some of the country's biggest High Street stores have slashed their prices by half in a desperate attempt to shift unsold summer stock.

The deals - reminiscent of this year's January sales - have set a 50 per cent minimum reduction, with some shops cutting prices by up to 70 per cent.

Fashion, electrical and department stores - which have been affected most by the credit crunch - are at the hub of the bargains, while clothing lines have also been heavily discounted.

Last week, the Confederation of British Industry revealed clothing sales are at their lowest level since records began 25 years ago.

Many retailers are now using similar tactics to the 'big four' supermarkets, which have launched major price cuts in recent months to entice hard-up shoppers into their stores.

Marks & Spencer, which held an early summer sale this year to improve trading ahead of its annual general meeting on July 9, handed out 800,000 reusable vouchers to its customers last week offering savings of 20 per cent.

Twelve of the vouchers - which were valid over the weekend - were also issued to its 70,000 staff to be distributed to family and friends.

A similar 'Family and Friends' promotion deal in February gave a major boost to sales.

Debenhams, which rushed out a trading statement last week to show sales were up 1 per cent year on year in an effort to scotch rumours it is struggling, was offering savings of up to 70 per cent over the weekend.

Among the many deals on offer were suitcases with reductions of 70 per cent and a 20-piece Royal Doulton dinner service at 67 per cent off. Many electrical stores - hit hard by the falling price of gadgets and consumers tightening their belts - also revealed major price cuts.

Although the Dixons Stores Group, which owns CurrysDigital and PC World, revealed it is selling more stock than a year ago, lower prices mean its profits have fallen 30 per cent compared to last year.

The firm's smaller rival Kesa, which owns Comet, has also reported falling UK sales for the past six weeks.

Over the weekend, it was offering savings of 20 per cent on fridgefreezers and 15 per cent on washing machines.

Slashed prices: Big stores are offering massive discounts to shift stock

Andy Clarke, the chairman of the CBI distributive trades panel and director of Asda, said: 'High fuel prices and concerns about the economy have blunted consumer appetites. Those retailers linked to the housing market are continuing to endure difficult conditions.'

• ALDI TAKES ON 'BIG FOUR'

Discount chain Aldi yesterday announced plans to open a new shop every week for the next five years.

The German firm said it would spend £1.5billion creating 1,500 jobs in an attempt to take on the 'big four' supermarkets.

Shoppers concerned about bleak economic forecasts appear to be turning their backs on major stores as they look for cheaper food.

Aldi posted a record 20 per cent rise in sales in the past three months and now has its biggest market share ever of 2.9 per cent.

The firm, which has 400 stores here, keeps prices low by selling fewer than 2,000 products, as opposed to ranges of 30,000 in the major supermarkets.