More than 5m people hit the sales on Boxing Day to buy goods discounted by up to 95% as retailers fought for survival, writes Steven Swinford.

An extra 560,000 people hunted for bargains — 12.5% more than last year, according to Experian, the business analyst.

While the post-Christmas surge showed no signs of abating yesterday as people queued from midnight in London for the Harrods sale, experts said the boost will not stop retailers going bust in January.

Jonathan de Mello, director of Experian’s retail consultancy, said: “Even though footfall has increased, it has come at the expense of very large promotions.

“Shops are making no margin or losing money. We predict January will be the toughest for 30 years, with a wave of insolvencies and administrations including big high street names.”

Experian is forecasting that by the end of next month more than one in 10 shops will be boarded up.

More than 200 Woolworths stores closed 27,000 staff will have lost their jobs when the other 600 stores close by January 5.

The Harrods sale cut Gucci boots by 50% to £179, while Marks & Spencer opened at 6am yesterday to sell many goods at half price. There were even bigger cuts at Selfridges, where a Balenciaga coat went from £1,287 to £350 and a Stella McCartney dress from £1,463 to £350.

B&Q charged half price for kitchen units and bathrooms and discounted other items by up to 75%.

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