The battle of the bargains

Record summer sales are being launched, with stores offering huge discounts.

The aim is to win back shoppers who are nervous about rising interest rates, warnings of a house-price crash and soaring personal debt.

In the next few weeks, dozens of major London stores will kick off what is expected to be one of the most competitive summer sales seasons ever.

Analysts believe trading will be buoyant as bargain-hunters take advantage of easy credit.

A spokesman for the British Retail Consortium said: "The recent hot weather has created a feelgood factor and people are spending on themselves, which bodes well for the summer sales.

"Big-ticket items like furniture and electrical goods will be heavily discounted. It's unlikely that the recent interest rate rise will dampen shoppers' mood as it can take between three and six months for rates to have an impact on spending."

A spokesman for the London Chamber of Commerce said: "We're anticipating a robust and healthy sales period. Shoppers are shrugging off the recent interest rate rise and continuing to spend freely. Even so, they are being quite selective and shops will have to work hard to draw them in by offering well-priced, well-targeted products."

Trading this year is already better than last when the Central line closure and war in Iraq took their toll. But stores say the congestion charge continues to present them with a challenge.

According to the Regent Street Association, customer numbers are down - but those who do come into central London are "serious shoppers rather than browsers".

At Lakeside shopping centre, special offers linked to Euro 2004 have increased trade. "This will give a good boost to the start of the sales," said a spokesman. "We're not expecting much impact from the recent interest rate rise. It hasn't fed through yet."

Those seeking the biggest bargains should head for fashion shops and specialist furniture retailers.

Reductions will be available at furniture stores including Aram Design, Chaplins, Geoffrey Drayton and Purves & Purves, where it is possible to save more than £1,000 on selected designs.

Other specialist shops and department stores are knocking 50 per cent off many lines.

Allders will sell half-price duvets from next Thursday. At Harrods, bargains include a Royal Doulton Royal Crown Derby 55-piece dinner and tea service reduced from £4,694 to £469. Up to 75 per cent will come off labels such as Alice Temperley and Marc by Marc Jacobs, with 50 per cent off Dolce & Gabbana, when the sale starts on 28 June.

Some sales are already under way, but many more start next week.

A comprehensive sales guide will be published with the Evening Standard on 29 June.