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Big spenders give West End stores a £50m boost
Samantha Cairns15 Dec 2008
LONDON'S major shopping districts today reported a big increase in sales as bargain-hunters defied the economic gloom.
More than two million shoppers are thought to have hit the West End at the weekend, with many attracted by the record number of pre-Christmas sales.
Hordes braved the weather to pack Oxford Street, Regent Street and Bond Street, spending about £50million in a major boost to retailers.
Their numbers were boosted further by tourists determined to pick up bargains as sterling continued to fall against foreign currencies.
The number of shoppers was up just under 10 per cent on the same weekend last year - raising hopes there could be an increase on the 40 million who visited the area in the six weeks before last Christmas.
The figures from the New West End Company, which manages London's main West End shopping streets, comes as a major fillip for its retailers who have suffered two months of disappointing sales. The number of shoppers and individual transactions were up but the amount spent was thought to be around the same because of the discounts.
Jace Tyrrell of the West End company said: "We estimate £50 million has been spent over the weekend, which is on a par with last year. Given the current economic climate, retailers are very happy.
"The strong euro against the pound also means Europeans are flocking to London to grab a bargain - with prices about 25 to 30 per cent down on Paris and Milan."
Even in London's most expensive boutiques, sales were strong, with some claiming sales were up 30 per cent on last year.
Colin Busby, manager of Jermyn Street's Hilditch & Key, said: "Obviously everyone's pensive because of the recession, but people are still buying. We've been doing a lot better this year than the same time last year, with sales up 30 per cent. We have a loyal customer base who return for our quality products."
The same was true of some shops in the new Westfield centre at Shepherd's Bush. UGG Australia retail director for Europe James Brennan echoed these comments. He said: "Since opening our Westfield store, the sales have completely exceeded expectations. We knew the demand for the brand was exceptionally high, but in current market conditions, nothing could've prepared us for the 4,000 plus customers we have coming through the door daily.
"We have had to double our staffing and regulate the traffic flow in the store. Unfortunately this has given us no option other than to have customers wait in line outside."
British Retail Consortium spokesman Richard Dodd said there might be a light at the end of the tunnel for some retailers, with many expecting a late surge in the run-up to Christmas. He said: "It's been a nervous lead-up to Christmas because conditions have been so gloomy and the sales figures from the last two months have shown sales down.
"But there might be relief across the retail sector - many customers have simply left their Christmas shopping late this year."
While shoppers continue to place clothing high on the priority list this Christmas, luxuries such as perfume seem to be suffering.
Karim Hamdoune, assistant manager at Knightsbridge perfumery Al Qurashi, said: "We're trying to do everything we can to save the business. We've noticed a significant change in the past two and a half months, it's very, very quiet.
"The business has gone down by almost 15 per cent when compared with the previous three months. People aren't spending their money on luxuries. We've just hired a PR company and started a new 15 per cent off card to try to increase sales."
WORD ON THE STREET
Katherine O'Brien, 27, of Streatham. The accountant, shopping at Westfield, said: "I've got a tracker mortgage and it's come down a lot, so I'm not worried at all. I've spent more this year than last, because my income has gone up."
Nicola Fitzgerald, 23, from Enfield. The trainee physical education teacher, shopping in Oxford Street, said: "I just spent £150 buying clothes in River Island and Top Shop and some Ugg boots from Selfridges but I managed to save around £20 with the price cuts. I'm probably being naive but I'm still spending the same amount. In Ireland, where I'm from, it's 10 times worse than it is over here."
Andrew Tilbury, 49, from Cambridge. The timber importer and exporter, shopping in Old Bond Street, said: "I go shopping with my wife one day a year and this is it. I'm really thinking more carefully about things and trying to stop my wife from beating the recession with her shopping. I want the cheaper option than she does. There's going to be more redundancies after Christmas."
Sally Morgan,50, from Hereford. The medical secretary, shopping in Knightsbridge, said: "I just went to H&M to get a half price coat. I'm definitely cutting back on spending. I'm just looking for discounts. I'm looking for presents for my children and I'm really trying to get the best offer. Most of the stuff is 20 to 50 per cent off."
Rachel Gibson, 27, of Chesham. The teacher, shopping at Westfield, said: "I'm not finding it tough. Normally you don't really get sales before Christmas, but nearly every shop I've been to today has had some sort of reduction. We queued up to get into Dune where there was 15 per cent off."
