Record discounts for sales

Shoppers are being blitzed with discounts of up to 50 per cent in the opening week of the New Year sales.

Virtually all the big-name high street chains, from WH Smith to Debenhams, have already plastered their windows with "50 per cent off " promotions on a huge range of lines. Shops said they are being forced to match the offers being promoted by rivals in an increasingly brutal price war.

Many stores are also struggling to clear their shelves of stock after a dismal Christmas.

The early start to the sales - with many being launched well before Christmas - has also meant shops having to offer everdeeper discounts to tempt shoppers back through their doors.

"There is no doubt that 50 per cent is the new 30 per cent," said one City commentator. "If these are the reductions in the first week of the sales, what's it going to be like in a month's time? It will be a total giveaway."

A source at Selfridges said: "Once one shop does it, everyone else has to. If they didn't they would get left behind because customers are obviously going to be tempted by bigger discounts somewhere else.

"In general the discounts this year are as big as, if not bigger than they've ever been."

On Oxford Street alone, 18 different companies - mostly household names - had "50 per cent off " signs in their windows. These included United Colours of Benetton, Marks & Spencer, Selfridges, Mothercare, H&M, Faith, Monsoon, Allders, Next, Superdrug, Etam, Wallis, Evans, London Luggage Co, Laura Ashley, Boots, Tie Rack and Accessorize.

Traditionally the sales have started with discounts of 25 per cent or 30 per cent before moving to bigger price cuts. However, analysts said stores had to be more aggressive this year because of lacklustre sales since the summer.

The cuts mean the cost of electrical goods, such as wide-screen TVs and digital cameras, has fallen to an all-time low.

Maureen Hinton, senior analyst at Verdict Research, said in previous years only Next had promoted a 50 per cent discount at the start of its sales.

She said: "The competition out there is huge. If Asda is selling DVD players at £30, then everyone else feels they have to come in at £30 too."

The prices have tempted record numbers of shoppers. Latest figures show that Saturday - the first "proper" day of the sales - was the busiest day of the year, with 2.5 per cent more shoppers than the same day last year.

Best bargains

Miu Miu brown leather "Klara Bunny" handbag: down from £305 to £152.50, Selfridges

Men's black leather jacket: down from £198 to £99, Gap

Pierre Cardin two-piece men's suit: down from £249 to £179, Suits You Menswear

Men's Tag Heuer watch: from £950 to £570, Mackenzies

Sharp Minidisc Micro Hi-Fi System, including CD player and radio: down from £249.99 to £199.99, Dixons

Prada woman's white hooded jacket: down from £380 to £190, Selfridges

Per Una sparkling black fur jacket: down from £99 to £45, Marks & Spencer

Maples large sofa: down from £1,349 to £669, Allders

Balenciaga woman's leather flight jacket: down from £2,085 to £1,042.50, Liberty

China dinner service for 12: down from £20,000 to £5,000, Thomas Goode, Regent Street

Gucci sunglasses: down from £107 to £51.45, The Sunglass Hut, Lakeside Shopping Centre