David Robertson, Business Correspondent
Win 100 iconic DVDs
Retailers reported that pre-Christmas sales had been poor, despite the unprecedented discounts offered in a desperate attempt to convince consumers to part with their cash on the high street.
The British Retail Consortium said that trading had “not been pretty” in the run-up to Christmas, raising fears that more stores would be forced to close in the new year.
The music retailer Zavvi became the latest chain to admit difficulties as it appointed administrators on Christmas Eve. It followed Whittards, the Officers Club and Woolworths, which have all been put up for sale in recent weeks.
The run-up to Christmas is traditionally a boom time for retailers, but early indications are that sales have fallen substantially below last year’s level.
Experian FootFall, a company that measures the number of shoppers entering each store, said that Christmas Eve numbers were down 4.3 per cent on last year.
This is an improvement on last week but suggests that there had not been as many last-minute shoppers as retailers hoped.
Stephen Robertson, director-general of the British Retail Consortium, said: “We’ll see the full December figures in a few weeks, but they won’t be pretty. Despite a last-minute surge, it’s becoming clear that overall this has been a poor Christmas for retailers, as struggling customers cut back and traded down.”
Zavvi, formerly the Virgin Mega-store chain, employs 3,400 people and is seeking a buyer for the business. Its 125 stores are expected to open today and offer big discounts as administrators try to sell remaining stock. However, not all retailers have struggled in the run-up to Christmas. The supermarket chain Waitrose said that December 23 was its busiest day ever.
The company said that it took £34.4 million on Tuesday, and in the seven days before Christmas sales were up 3.5 per cent compared with the same stores last year.
The supermarket said that it had sold 231,000 turkeys this Christmas, 34 million sprouts and more than 12 million mince pies.
Online retailers also appear to have bucked the downturn with sales up on last year. Hitwise UK, which tracks visits to websites, said that sales on December 21 had been 3.9 per cent higher than last year.
A number of retailers began their sales yesterday, in an attempt to attract online customers. More than £100 million was expected to have been spent yesterday as about five million shoppers took advantage of discounts of up to 50 per cent at stores such as Marks & Spencer.
Debenhams was cutting some prices by as much as 70 per cent, and Superdrug offered discounts of up to 90 per cent.
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
36-month car lease
on contract hire for
£359.99 plus VAT pm
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
The UK's leading alternative to showroom finance.
Finance packages tailored to your needs.
Minimum loan of £15,000
Car Insurance
c£100,000 + car, bonus & bens
Lord Search & Selection
Midlands
Competitive salary + NHS pens
The Council for Healthcare Regulatory Excellence (CHRE)
London
Not Specified
The Sheppard Trust
London
£31,842 – £38,378pa
Charity Commision
London, Liverpool or Taunton
Moments from Battersea Park.
For sale with Winkworth.
See your free Experian credit report beforehand
Book now & save over £100pp.
11 cool resorts, lowest prices... Early Booking offers 15 Nov.
20% off selected Azores holidays taken in October with Sunvil Discovery
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.