Pre-Christmas sale 'cuts' warning

'Fewer' discounts in the West End

Pre-Christmas discounting in the West End will be cut "dramatically" compared to last year, the firm representing London's shopping district has warned.

Shops will offer "tactical promotions" rather than big sales seen last year which were aimed at clearing excess stock, the New West End Company said.

Following strong sales since September "cautious" retailers will have less stock to suit the "savvy shopper".

The pre-Christmas period will see increased trading hours.

Announcing 5 December as the annual traffic-free day for shoppers in the West End, chief executive of the New West End Company, Richard Dickinson, said retailers were "more buoyant" this year.

'Panic clearance'

He said: "We are cautiously optimistic about Christmas. Certainly September, October and into November looks better but that is because we are comparing against last year, which was pretty poor.

"I think last year was very very late and in the last three or four days it went well, but it took a long time coming through.

"What we are seeing now is actually much better demand and interest very early on, which bodes well for Christmas.

"There is probably a little less stock around because of the experience last year which means that shoppers have to be savvy."

Retail analyst from Mintel, Richard Perks, said the absence of "panic clearance" is the result of retailers misjudging the customer mood in 2008.

"Last year retailers had a strong beginning and retailers stocked up expecting a good Christmas but that didn't happen because of the near financial collapse.

"We went into the year (2009) in recession and people have felt better off as nothing dreadful has happened. Retailers were too cautious so I think they are not going to have enough stock this year."

The New West End Company, which represents 600 shops, said a survey of 100 retailers found that 60% will introduce new product ranges and 40% will use "tactical" promotions and sales.