'It's chic to be cheap', says retailer

Peacocks targets mothers who buy for themselves and the whole family

In the increasingly competitive retail market, discount stores are continuing to take market share from mid-market names such as Marks & Spencer. Max Foster reports from Cardiff, home town of discount retailer Peacocks.

Peacocks may not be the most glamorous name on the high street, but its sales figures are the envy of mid-market retailers like Marks and Spencer.

Over the six months to September Peacock's sales were up by more than 20%.

Shoppers find the prices and quality of the merchandise at Peacocks outstanding value.

This is music to the ears of Peacock's finance director Keith Bryant, whose strategy is to keep cutting prices and opening new stores.

"Where in the past it might have been needs driven, people with not as much money would shop at value operator, now it is that people like a bargain," he says.

Shoppers find Peacocks good value

"It is almost chic to be cheap... now we're getting a lot of middle earners coming into our stores."

Peacocks credits a large part of its success on its strategy of targeting mothers who buy not only for themselves but the rest of the family.

Peacocks has also tried to tap into the more fashion conscious market, which is why it launched a new range earlier in the year.

Investors are reluctant

Sales may be up but Peacock's share price is down - investors are worried about the impact price cuts are having on profit margins.

Robert Clark a retail analyst, suggests that the City is averse to cutting of gross margins even though it is a good approach for the company

It has been a tough year for retailers and with little prospect of a let-up in the intense competition on the high street, expect more bargains over Christmas.