75 per cent sales begin on Christmas Eve

PRICES are to be slashed by up to 90 per cent as retailers battle to survive.

B&Q, one of Britain's biggest chains, announced today it will discount thousands of products by up to 75 per cent from 7am on Christmas Eve.

The DIY group is bringing forward its December sale from Boxing Day for the first time and will offer 50 per cent discounts on all kitchen and bathroom units and their installation.

It came as Superdrug said it would cut prices by up to 90 per cent from Boxing Day. It will sell items for as little as 10p in an unprecedented £40 million bonanza involving 24,000 products.

Gordon Brown today warned that it would be tough for the economy next year but the City would fight back from the recession and enjoy a new age of prosperity.

Experts said the scale and depth of discounting on the high street was now unprecedented. More than two thirds of shops saw sales fall in the first half of the month and footfall this week is down 11.2 per cent on last year.

Neil Saunders, senior retail analyst at Verdict, said: "You walk past virtually every shop and see discounts of at least 50 per cent and there's more to come. This has never been seen on the British high street before and shows how difficult things are for retailers."

He warned that some retailers were using sales as a way of limiting their losses. "The problem is consumers have grown to expect huge bargains and once one retailer starts discounting, the others are under pressure to follow. Many are now trading for survival."

Consumers have already enjoyed an extraordinary stream of pre-Christmas sales at three quarters of Britain's biggest retailers, according to consultants PricewaterhouseCoopers.

Debenhams launched a five-day sale with discounts of up to 50 per cent on Wednesday and House of Fraser and John Lewis responded by marking down prices.

Fashion retailers, including Gap and French Connection, are also selling much of their stock at half price and Marks & Spencer recently announced yet more price cuts of up to 30 per cent.

Nick Bubb, retail analyst at Palii International, said: "All these sales are worrying. People are putting off spending hoping prices will get even lower and that's bad for the economy." David Buik, from BGC partners, said the trend for deep discounts meant many retailers were making no profits.

Jace Tyrrell, spokesman for the New West End Company, which represents traders in Oxford Street, Regent Street and Bond Street, said discounts of 70 to 80 per cent would be the norm.

He said: "The scale of the discounts will definitely be increased. Shoppers are expecting it, it is definitely a shoppers' market this year."

Selfridges kicks off the West End sales season on Boxing Day followed by the John Lewis Clearance on the 27th.

A spokesman for the British Retail Consortium said: "The length of the discounting has been prolonged and it is unusual to see it start so early."

Sir Terence Conran, one of Britain's most experienced retailers, described the parlous state of the high street as "a very worrying situation".