Bargain hunters defy the credit crisis gloom

Dec 22 2008 by Paul Loraine, The Journal

CHRISTMAS shoppers turned out in force in the North East over the weekend despite the economic crisis, shopping centre bosses said yesterday.

Newcastle’s streets were lined with bargain-hunters, with half-price sales advertised in a number of stores.

Many stores said they would match the lowest price offered elsewhere while others had one-day or ‘flash’ sales.

Stores including French Connection, Dune, H&M and WHSmith were all offering up to 50% off selected items while, in some shops, the price-drop was as much as 70%.

Men were making a late dash for presents last week as Christmas draws ever closer, department store chain John Lewis said. The group has seen strong sales in items men traditionally give to their partners – such as fragrance and lingerie.

Patrick Lewis, the group’s director of retail operations, said ranges such as Clarins and Clinique were selling well along with old favourites such as Chanel No5.

And Tim Lamb, general manager of Eldon Square shopping centre, said: “Saturday was very, very busy and in the last part of last week it really picked up.

“I think the credit crunch is affecting everybody. It’s been difficult in the lead up to Christmas but the Christmas rush that we expected has certainly happened. What will be interesting is that we now have three days leading up to Christmas – almost three bonus days – and it will be interesting how many people have finished their shopping already. There’s a lot of one-day or flash sales. A lot of retailers are holding off until the week after Christmas and the first week of January.”

Mr Lamb said sales assistants were having to work harder for sales.

“I wouldn’t want to kid you and say trade has been fantastic but has by no means been as bad as people have predicted,” he said. “Retailers are working harder. As soon as people start to use the word ‘recession’ a lot of people start predicting a difficult time. It has been difficult but a lot of retailers have reported like-for-like sales with last year.”

Barry Turnbull, general manager at Gateshead’s MetroCentre, said while this Christmas period had presented a challenge, it was not all doom and gloom.

He said: “As always, shoppers are very savvy, therefore bargains and special offers are being very well supported with retailers using these incentive days more tactically to drive footfall and spend. On the whole, it has been a challenging Christmas for retailers, with many having to work harder and get into sale mode earlier than previously.

“However, those in a strong retail position offering customers what they want are finding that they are trading relatively well.”

Page 2: Make or break time for retailers >>