The January sales are here again, but so what? Once upon a time, the sight of "50% off" signs in shop windows would have had the most reticent of shoppers out looking for a bargain or two.

But not any more. The once bi-annual event has lost much of its traditional appeal as shops seem to hold sales all year round.

Out with the old

Shoppers are left with the impression that the sales never end

Sales evolved as a means of getting rid of as many unsold end-of-season lines as possible to make way for the new season's stock.

The law states that sale products have to have been on display at the pre-discount price but it does not specify that any of the product lines has to have been sold.

Big discounts on such items are relatively painless for retailers as they benefit from improved cashflow when products are finally sold.

Bargain hunters

But much has changed since the last recession of the early 1990s when a dearth in consumer spending hit retailers' profits. The desperate response was to cut prices on large volumes of stock, not just end-of-season lines.

The recession appears to have had an ongoing impact on consumers' attitudes to spending. People seem to have become more cautious and have more of an eye for a bargain.

In response, retailers have taken to buying goods from manufacturers on " favourable terms". These are sold as "special purchases" or as part of "value campaigns" rather than sale items.

Oblivious to the technical difference, this gives shoppers the impression that there are permanent sales. It also leads to a growing reluctance to pay full price. For many, paying the full ticket price would almost be criminal!

The advantage for retailers is that such promotions are more profitable than selling normal clearance items.

Tactical shopping

In the last few years, the change in consumer attitudes has even had an impact on the prime profit period for retailers - Christmas. December is, by far, the month when most money passes through shop tills.

Traditional sales are a clear-out of end-of-season stock

The run-up to the festive season has become a war of nerves between retailers, who want to see as much stock sold at full price, and shoppers, who have become willing to put off present-buying in the hope of possible price cuts.

Christmas 1998 proved particularly trying for shops when hopes of record spending were dashed by poor sales figures in October and November. But this was too late for retailers who had already placed orders with manufacturers in the summer.

Economists blamed consumer belt-tightening on interest rate increases earlier in the year and worries about the outlook for jobs and the economy in 1999.

Sale signs appeared everywhere in the week before Christmas as retailers lost their nerve, desperate to shift a mountain of stock. From the cheapest off-the-rail items to expensive designer fare, nobody escaped.

So where does this leave the January sales?

The sparkle may have gone, but the traditional post-Christmas clear-out still serves it purpose for shops and consumers.