The beleaguered retail sector was today set to continue enjoying a post-Christmas shopping boom but experts warned it may not be enough to ensure some weaker players survive.

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Retail analysts Experian said the number of people visiting shops on Boxing Day was 21.5pc higher than a year ago as stores put on unprecedented numbers of discounts to drum up trade.

Shopper footfall was expected to rise further today, it added, as some chains that were not open on Boxing Day, such as department store John Lewis, resumed trading and others launched sales.

But fears persist that some of the biggest names on the high street are in danger of collapsing in coming days.

The sector has suffered a bleak year in which the squeeze in consumer spending was compounded by the rise in VAT to 20pc and the warm autumn weather, which hit sales of winter clothing.

As a result, retailers have put on a frenzy of promotions in the run-up to Christmas and many are now dropping prices further.

Industry insiders say that despite reports of encouraging recent trading, some big-name players may not make it through the next few weeks, with many now due to pay their rent bills for the next quarter.

Anita Manan, an analyst at Experian, said: “It’s good to see so many people visiting stores and the milder weather has helped.

“With the quarterly rent due, the difficulty is that they are selling a lot of stock at very low prices.

“What remains to be seen is if this quarter’s takings are enough to see them through this difficult period to the next quarter.”

High street lingerie chain La Senza, which has 146 stores and 18 concessions in the UK, announced last week that it plans to enter administration in coming days.

And Blacks Leisure, which owns 98 Blacks outlets and 208 Millets stores, has fuelled speculation that it would go into administration in a move that would allow rivals to cherry-pick its best assets.

The outdoor clothing group, which employs 3,600 staff, put itself up for sale following dire trading. But it signalled a so-called pre-pack deal was on the cards as it said it did not expect an offer for the group’s shares, only for its trade, assets and brands.

However, many stores and shopping centres have reported strong trading in the post-Christmas sales.

Upmarket department store Selfridges said it had enjoyed record sales in the first hour of Boxing Day despite a Tube strike in London.

And queues were yesterday reported to have formed outside several Next stores after the fashion chain opened at 6am and offered all items at half price or less.

Kent’s Bluewater shopping centre expects nearly a million visitors this week amid strong demand for as luxury items, such as premium-branded handbags and accessories, young fashion ranges, electricals and other big-ticket items.

2 comments

  • There is little choice in the current economic climate but to cut back on spending. Things cost more and there is only so much money available to spend. We are still only at the beginning of the crisis. For those who keep an eye on the horizon at what is happening in that dead weight the eurozone as well as the wider global economy, it is plain that the worst is yet to come. If you have shares prepare to forget them for the next 15 years. If you have saving prepare to see their value drop by half. If you have a job fight tooth and nail to keep it and don't even THINK about going on strike for more because there isn't any. The worst is yet to come. You ain't seen anything yet!

    Report this comment

    Carborundum

    Thursday, December 29, 2011

  • I am already working out how I can cut down my spending next year. I was unemployed for nine months a year ago, I am now working at two part time (very) jobs paying the bare minimum. I record every penny I spend(very depressing, but mind focusing) I know to the penny what I spend. With careful bugetting I have not got in debt, I fear this coming year I will be have to be more prudent. After working how much I have to spend on food, I work out what meals I can make, Thank heavens for potatoes, baked beans a stock of soup in the freezer. I urge any one who is facing unemployment or wage reduction. to start to check where their money is being spent, I is amazing the savings you can make, Meals may be boring, but they can be filling, Make sure you are claiming any benefits you are due, Help with counciltaxrent.Just for the record I survived on £65.00 a week when I was unemployed, I know I had help with council tax and rent, but I had to pay the rest of the bills out of the dole, A very interesting few monthes.

    Report this comment

    lucy

    Thursday, December 29, 2011



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