Sales shoppers cautiously upbeat

Crowds pack Oxford Street, but not everyone is buying

The great British consumer is in a cautiously optimistic mood as the post-Christmas sales get under way, according to an on-the-spot poll in London's Oxford Street by BBC News Online.

The annual sales, which began in most major shops on Thursday and will continue until at least until mid-January, are of critical importance to the retail sector.

A poor performance during the two weeks either side of Christmas, when consumers rush to take advantage of discounted stock, can put a sizeable dent in full-year profits at major department stores.

But at a time when UK businesses are succumbing to the global slowdown, leaving consumer spending as the main driver of economic growth, analysts increasingly see the mood of the British shopper as a barometer of the country's wider economic well-being.

Spending flat

Talks on Thursday with a random sample of shoppers on Oxford Street, London, the UK's main shopping mecca, suggest that revenues from the 2001 sales will be flat on the year.

A large majority of respondents said they plan to spend no more than last year during the sales, while some admitted they plan to spend less.

Lois Greer (right), forgets about recession at Christmas

The few who do plan to up their spending this time round said they have saved up earlier in the year in order to cover the extra expense.

And while Oxford Street was heavily crowded on Thursday, with pedestrians spilling out onto the road, the limited number of shopping bags on view suggested that by no means everyone was buying.

Some regular sales-goers added that they found the shops less busy than they have been in previous years, with many complaining that there are fewer bargains available.

"The good stuff isn't reduced enough," said Kulj Panesar from Forest Hill, East London.

"But some prices are lower, so you might as well take advantage."

Recession fears dismissed

However, our poll also indicates that the great British shopper is still shrugging off warnings of an impending recession.

Many of those questioned said they are confident that the UK will avoid a recession in the year ahead, while even the more pessimistic respondents said they haven't trimmed their spending plans.

Manish Shavadia: Tempted by bargains

"My job is very unstable, so the future looks a bit bleak," said Manish Shavadia from Wembley, who estimated his shopping budget at £250.

"But there are good bargains in some shops."

Others said that recession or no recession, they plan to spend while they can, displaying the exuberant consumerism that has generated near-record retail sales growth this year despite the looming recession.

"I think Christmas is a time to forget about all that," said Lois Greer, who had travelled to central London from Windsor.

"I'm not really worrying too much about it, I'm just living as I always have done," said Mike Bloodworth from Ealing, who said he planned to spend around £200.

Others felt sure that the UK economy would bounce back to healthy growth early in the new year.

Clothes, footwear and furniture remain the most sought after items.