The Maxx factor hits town

Hefty mortgage payments and plummeting house prices were forgotten as customers sifted frantically through packed rails of clothing and filled baskets with designer bargains.

TK Maxx is the UK's only major discount retailer and offers up to 60 per cent off some of the best known brand names in fashion. Cut-price pieces are available by everyone from Stella McCartney to Valentino.

This new store in Kensington High Street, which boasts 20,000 square feet of designer items across women's, men's and childrenswear, is not strictly TK Maxx's first central London location - it also operates in Hammersmith and Clapham.

But the opening in a destination shopping venue in the capital is indicative of a move away from the usual choice of location on the outskirts of towns or in retail parks.

Budget stores and outlets are cashing in on the troubles facing high street retailers, moving into their territory with low prices and incredible bargains.

"At this difficult time you do see people trading down on our high streets," says Ana Santi, of the fashion retail magazine Drapers Record.

"You only have to look at the success of Primark's arrival in Oxford Street to see how successful this opening could be."

TK Maxx landed on British soil in 1994 and now operates more than 200 stores nationwide. It is the European branch of American outlet company TJX, which has 2,000 designer outlets in the US and Canada.

The store's low prices are dependent on TK Maxx's buying teams making deals with major fashion brands in order to buy out-of-season stock for a fraction of its original selling price.

In Kensington, shoppers have been snapping up Alexander McQueen dresses once costing £670 for a more affordable £129.

Fans of lingerie brand Myla were able to pick up bras, which usually retail for £100, for a mere £20.

As with all TK Maxx stores the shop fit is basic and there is a notable lack of customer service. Certainly it is missing the glamour of New Bond Street, where much of its merchandise was once on show.

"Of course there are no waterfalls or marble f loors," says TK Maxx spokeswoman Victoria Wright. "We'd rather pass on the savings to our customers."

Three writers join the hunt for bargains

The convert - Connie Allfrey

I get rack-and-tag angst, and both hit me like a midge swarm on entering TK Maxx. I started with some sunglasses.

The same murky reflection stared back at me with a massive plastic tag obscuring half my face, but then I saw they were Givenchy and slashed from £149.99 to £29.99 and my face took on a freakish grin. "God, I've been here for hours," said the woman next to me.

I forced myself away to the clothes section. Marc Jacobs red leopard print, Matthew Williamson sequined ruffles - both with "our price" labels making them appear Asda-like accessible.

Smitten, I loaded up 14 hangers and phoned my friend Astrid, who is greeted by name in most high street stores.

We frolicked and fluffed around for an hour. There is undoubtedly room for error as little Miu Miu prom dresses and Chloe sheaths are generally the reserve of the waif-like heiress for a reason. I fell finally for a 100 per cent silk Tibi dress for £69.99 - down from £269 - and a 100 per cent cashmere jumper.

I could almost hear my mother applaud instead of her usual shudder when I shuffle synthetically along. TK Maxx is fun and amazingly good value, the queues and shoves and tag-attacks all put in perspective when you walk out in a Chloe tuxedo for £70 as Astrid did - damn her!

The TK Maxx virgin - Sebastian Shakespeare

I have never set foot in TK Maxx before but I would go back. If you look beyond the hoodies and T-shirts you can find a quality bargain.

I bought two shirts (Pierre Cardin £14.99 reduced from £39.99 and Savile Row £16.99 reduced from £50). I did have my eye on a French Connection brown tweed coat (£59 reduced from £200) but I think it went before I made up my mind.

Ties on the right side of hideous are a snip at £7 and you can buy some plausible shoes for £25. A good one-stop shop if you are in a hurry but I'm not sure I would ever want to linger - it's a quick date, not a love affair.

The veteran - Anne McElvoy

I'm a TK Maxx veteran, so pride myself on being able to spot the diamond in the rough. There is quite a lot of rough: even in this flagship store. But with some patience, you can do pretty well.

A budget of £100 feels lavish. I fancied some evening glamour and had my eye on Diane von Furstenberg dresses marked down to a measly £49.99.

Alas they disappeared too fast. If I could have stretched to £150, I'd have blown it on a heavy silk printed Alexander McQueen prom dress.

For £12.99, though, I found a nicely designed black evening top with a foxy drawstring neckline and a von Furstenberg wraparound black and cream top for under £50.

The end-of-range Elle Macpherson lingerie is the seventh wonder of the underwear world - and marked down to a pittance.