Unexpected boost for traders as stores report soaring sales

Published on Saturday 3 January 2009 10:07

RETAILERS in the Capital today revealed further unexpected cheer as shoppers rush to snap up post-Christmas sale bargains.

Department store chain John Lewis – widely regarded as a barometer for retail trends – said its St James Centre store put in a record sales performance in the week to the end of Hogmanay trading. Harvey Nichols also recorded strong sales growth in its store in the last days of 2008.

It follows data from both the St James Centre – Edinburgh's biggest shopping centre – and Livingston's The Centre showing footfall surged well ahead of last year in the early days of the post-Boxing Day sales.

Retail experts warn, however, that the upbeat news is likely to be short-lived – more gloom is expected as consumers realise the best of the bargains have been snapped up, or they decide they have spent enough.

It's also thought heavy discounting encourages people to spend now that they would otherwise have spent in coming months.

John Lewis said that sales at its St James Centre store were up 12 per cent on last year in the four days to Hogmanay, providing it with a record end to the year.

It followed the momentum from the week to December 27, when sales increased by 5.3 per cent in Edinburgh. The branch was one of only eight of John Lewis' 28 UK stores to achieve year-on-year growth in the week.

Louise Elliott, personnel manager at John Lewis in Edinburgh, said: "In general, our clearance reductions are up to 50 per cent off on thousands of lines. In terms of value and pricing, we are up there with all the others.

"But this is a period of absolute uncertainty. It is very difficult to guess what will happen in the next few months. Today onwards is critical."

She said an increase in people giving gift vouchers or cash as Christmas presents because they anticipated a good winter sale season had helped boost trade in the early days of the sale, with items that are "complimentary" to gifts, such as iPod speaker docks, doing well.

Gordon Drummond, general manager at Harvey Nichols in Edinburgh, said: "Boxing Day was well up on last year and we had a good day on Hogmanay and the day prior to that. This week has been extremely good for us."

Howard Archer, economist at IHS Global Insight, issued a note of caution though. He said: "Once the best of the bargains are gone and consumers have got what they most want or need, we suspect that the interest in the sales will fall away quickly."

Your Say: Have you been snapping up the bargains?

Evelyn Robertson, 66, retired, Orchard Bank, Edinburgh: "I honestly think the sales are overhyped. Some of the stuff that says 70 per cent off isn't worth any more than that because it's rubbish."

Sandra Aitken, 44, playworker, Pirniefield Bank, Edinburgh: "I've been trying to make the most of it - every penny you can save helps, especially with the credit crunch."

Gordon Allan, 39, estate agent, Dalkeith Road, Edinburgh: "I have had enough of shopping after Christmas so I'm no longer interested. I'm just going to avoid the shops until the new stock comes out."