NY sales already started, says Alba

HIGH Street retailers are engaged in a record level of promotional activity this Christmas as the big chains desperately bid to entice shoppers into their stores

Daniel Harris, chief executive of consumer electronics group Alba, claimed the traditional New Year sale was effectively taking place now as shoppers leave it until the last minute to buy gifts.

He added: 'It will all depend on the next two to three weeks. If the consumer comes out and spends, the retailers will be fine, if they don't there will be more bleak Christmas retailing stories.'

Alba owns the Bush and Goodmans brands and in May bought 50% of Grundig. It sells into a host of big-name stores such as Dixons and Argos.

Harris said sales dropped sharply in October but picked up last month and were continuing to improve.

'Most retailers have switched tactics and their strategy is far more promotional, aggressive and dealbased than two months ago.î

Flat-screen TVs remain bestsellers for Alba - 'The world is going flat,î Harris said - while MP3 digital music players had almost completely replaced their portable CD counterparts.

Alba's warning about October's sales sent its shares to their lowest since the start of the year, down 8 1/2p to 666 1/2p.

Half-year results to September showed pre-tax profits rose 3% to £7.6m. Like-for-like sales over the six months excluding Grundig were up 6%, but net debt shot ahead 56% to £165.3m.