NEWS

Christmas sales set to start early

Shoppers could see Christmas come early to the East Anglian high street as retailers start the sales early in a bid to boost trade.

One insolvency specialist has warned that up to 323 UK retailers are on a “critical watch list” - having a 70pc chance or more of failing - and poor trading over the festive season could see them go bust.

But East Anglian retailers said there was “no cause to panic”.

Customers had “held back” on spending at the height of the turmoil on Wall Street, but had now returned in numbers to the high street, retailers said.

The British Retail Consortium added: “Retailers recognise that consumers are under pressure from all sorts of things - from increases in fuel, to electricity prices to council tax rises.

“So they are adapting their sales strategies to accommodate that.

“Discounting is happening at a greater rate - deeper and earlier than in previous years.”

Richard Marks, general manager of John Lewis in Norwich, said that a change in the weather had fuelled a 13pc rise in sales on Sunday.

But there were also signs that consumers were buying goods that would help them trim their budget elsewhere.

“Inevitably, people will be careful, but those retailers that focus on customer services and take care of their customers are those that will fare better in the current trading circumstances,” Mr Marks said.

“What we are noticing is the trend for people to buy electric blankets and slow cookers - just the sense that people are delaying switching their heating on. We're noticing good trade in haberdashery and craft and fashion fabrics and sewing machines - people may be making their clothes rather than buying them.

“Generally people have been cautious over the last few weeks. With the global chaos, there's a definite feeling that people are just holding back their spending until things settle down.”

Mr Marks added: “Overall, this weekend has been extremely busy. We were 5pc up on Saturday and 13pc on Sunday. The weather has a lot to do with that - it was awful on Sunday and people came into the city. Just the turning temperatures and the slightly more autumnal feel got people back into the high street.”

Alan Day, general manager of the Mall, Norwich, said footfall was “holding up” against the number of shoppers last year. “In terms of spend, we've got a promotion right now, and we're doing well,” Mr Day said.

“But prior to that it was slightly down. People are probably just thinking twice about spending money, but there are a lot of sales on.

“I would probably think the Christmas sales will start earlier this year.” Mr Day said two new retailers had just taken units in the Mall, including computer business Storm Technology.

Meanwhile, Davina Tanner, general manager for Chapelfield Shopping Centre, said: “Last Saturday we had a high level of visitors and speaking to retailers over the weekend they seemed very encouraged by the level of spend. Many of the retailers within Chapelfield are seeing good levels of trading and at this stage the indications for Christmas seem positive.”

But insolvency specialist Begbies Traynor said it expected banks to grant debt-reliant retailers a “banking honeymoon” until the end of the year when they will call in the loans as trading woes deepen. Retailers borrow the most in September and October in the run-up to Christmas because of payments to suppliers.

Begbies partner Mark Fry said: “There is every chance we will see a rash of retail failures at the start of 2009.”