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High Street has half-price Super Thursday
Terry Kirby and Kiran Randhawa11.12.08
SOME of the country's biggest high street names today cut prices by 50 per cent in a desperate attempt to lure shoppers.
Woolworths announced a half-price closing down sale after last-minute attempts to find a buyer failed. House of Fraser also promised cuts of 50 per cent on many prices.
One analyst in the City summed up the wave of panic, saying: "Desperate times call for desperate measures."
Even Britain's biggest retailer Tesco signalled that it was not immune from the downturn with an announcement that it would halve prices on 1,000 products. Christmas food, drink, toys and gifts are all included.
Department store chain House of Fraser said it was offering reductions of up to half across all sections of its business - from clothes to furniture and homeware.
Among its competitors, both Debenhams and Marks & Spencer have already held a series of 20 per cent discount sales.
M&S has promised to continue the reductions on many lines this week and is also offering four-for-three deals on party food.
A battery of other names such as Currys, Argos, Boots, Sainsbury's and even Waitrose are offering large discounts or special offers on many lines this weekend, with cuts of 20per cent or more commonplace.
Retailers are deeply worried that many nervous consumers are holding back on their Christmas spending in the hope of picking up bargains as the festive season gets closer.
But the biggest concern on the high street is that many people will simply not spend much at all. According to the British Retail Consortium, sales fell 2.6 per cent in November, compared with the same period last year.
Manoj Ladwa, an analyst at ETX Capital, said: "Desperate times call for desperate measures.
"While this will do little to boost share prices, retailers realise that more than a cut in VAT is required in order to spur sales during this crucial period."
The increasing alarm from retailers coincides with the Woolworths closing down sale which has been billed as "The Biggest Sale Ever".
Stores across the country slashed prices as administrators, who were called in following the chain's collapse, looked to recoup money. Accountants Deloitte said a rescue deal for the company had not materialised, and they would be selling its 815 stores. About 25,000 staff face redundancy.
The latest move to sell Woolworths to its former chairman, Sir Geoff Mulcahy, failed yesterday.
Most of the valuable high street locations will now be sold to chains such as Iceland, Argos or Wilkinsons. Tesco may also bid for some sites.
The shockwaves from the collapse will spread beyond the stores themselves. Huge discounting in Woolworths shops is likely to have a knock-on effect on other already hard-pressed brands as customers stock up on cheap wrapping paper, toys, children's clothes, CDs and computer games.
Entertainment UK, Woolworths' wholesale arm, also owes millions to companies such as Microsoft, Nintendo and Paramount. The possibility of many thousands of staff from the failed retailer joining the unemployment queue will add to alarm at the state of the county's economy.
Deloitte has already cut 450 administrative jobs at the chain's offices in London and Castleton, near Rochdale, and some stores are expected to close before the end of the month.
Neville Kahn, of Deloitte said: "We continue to make every effort to convert interest in the Woolworths assets into firm offers.
"While we are still seeking bids from interested parties, Christmas is clearly the busiest time of the year for retailers and it is prudent to do all we can to sell existing stock.
"By moving to a store closing sale and further discounting the stock, we are maximising the sales potential that this period offers."
Reader views (11)
I feel very sad for the loyal employees of Woolworths who are about to lose their livelihoods. The whole world is experiencing an economic downturn and it is foolish to blame Gordon Brown (not that I'm a great fan of him). The typically British reaction to find a whipping boy whenever there's a problem solves nothing : let's find a solution ! I don't imagine the Banks or the Oil Companies are losing too much sleep whilst the rest of us suffer.
- John Bursby, Royal Tunbridge Wells
They are probably waiting for Brown to knock another 2.5% of the VAT befoe they go and buy. What a plonker Rodney!
- Stephen Rothbart, Prague, Czech Republic
Just walked around a local woolworths which had fans at half price. Now who needs a fan in this weather?
Wonder if someone will find some un-opened packs of their buscuits when they reach they back of a stockroom?
Thed fact is they charge MORE than a pound for goods that cost a pound in pound shops. Just check out a box of maltesers.
- Melvyn Windebank, Canvey Island, Essex
I think shoppers are getting fed up with the "Up to" part in small print of these 50% offers. I see the "up to" on a window - I walk on by. The retailers are doing themselves a lot harm with this ploy and wasting everbodys time just to get punters in the shop.
Think I'll wait till next year when there will be genuine 50% reductions what retailers have woken up to removing the "up to" part.
- Raymond, London
Theres a lady in my floor thats always on the woolies website. All day.. while she gets paid (taxpayers money) she browses online. In the last two months all Ive seen her do is be on the woolies website all day. BOY WAS I SO HAPPY TO SEE THAT WEBSITE GO. LOOK ON HER FACE WAS WHAT MASTERCARD WOULD SAY "PRICELESS".
- Anon, Tower Hamlet
Maybe the kind of people who shop in Woolworth's don't have jobs.
- Neil, london uk, Airstrip ONE .
I agree with Cat, the sales should be over the weekend, so that the dwindling band of people working to support all the loans, benefits, community cohesion and so on projects could look around them.
Never mind, they probably wouldn't have any moeny to spare, their money has already gone on those wonderful 'value' projects.
- Helen, norwich
Like Cat from Essex says we're at work! Wouldn't a 'Super Saturday' be better for the tills? Maybe not.
- Jim, london
Well I went into the local woolies again today thinking stock would now have great reductions as they are closing down and the prices were all exactly the same as when they started last week, so people were again confused and waiting in the long qeues only to be told once again that not everything carrys a 50% mark down
- Linda Menzies, west molesey
Maybe they should do some sales at the weekend, people who work might actually be able to get there then!
- Cat, Essex
Should it not be super Thursday then?
- Marcus, East Molesey
