Bargains galore in battle of the high street

WALK along any high street in Britain and you would be forgiven for thinking you had hit the January sales. Billboards and posters scream "bargain", bombarding shoppers with discounts to beat the credit crunch and get the tills ringing. And, so far, it appears to be working.

Pre-Christmas sales are more extensive this year than ever before, with three-quarters of the country's leading retailers offering significant mark-downs.

This unprecedented blitz on prices is a perfect opportunity for the canny shopper to bag a bargain and save a fortune.

Websites such as Kelkoo.co.uk and Pricerunner.co.uk are a great starting point, helping the consumer to compare prices for the same item from several different online retailers.

You can also earn money while you spend by using cashback websites. The site Internetcashback.co.uk offers cashback to people who buy goods through its site from more than 700 online retailers, including Argos, Apple, B&Q, and John Lewis. And for the cynics who think people can save only pennies, they should look again, because the amounts that can be earned vary between 3 per cent and 15 per cent of the purchase price.

Financial experts are urging customers to take advantage of the offers and say the normal rules of engagement have been suspended. Consumers, for the first time in years, have the upper hand.

Rebecca Atkinson, of Moneywise.co.uk, said there were huge savings to be had if you checked out the internet and did your homework.

"In the past few years we have seen sales starting earlier and earlier, but nowhere near this extent," she said.

"This is a direct consequence of the credit crunch and concern about the recession. The traffic online shows that people are interested in looking at which shops are offering the discounts. This is their opportunity to take advantage."

But she urged customers to be discerning and buy only what they needed, because there could be even bigger bargains to be had. "Everyone is thinking, 'will it be cheaper after Christmas?'. If you are doing your Christmas shopping, it's not an option: you have to buy now. But if you are shopping for yourself, it is undoubtedly cheaper after Christmas.

"The leftover stock has to be sold and there's only one way to do that – to reduce the price and get it off the shelves."

This year, the smart money is on voucher codes. Forget getting a few pennies off a bottle of brown sauce at your local supermarket; vouchers are back and can give massive discounts on everything from pizzas to soft furnishings and DIY goods.

The site myretailcodes.co.uk includes updates every day on online retailers' discount code offers and voucher codes, and it claims to have in excess of 2,000 codes available at any one time.

Yesterday was expected to be the UK's busiest internet shopping day of the year, with £320 million forecast to be spent online. The internet trade body IMRG said the UK's online Christmas retail sales could reach a staggering £13.6 billion.

The online retailer Play.com said it was expecting sales to soar as customers turned to the internet for bargains.

Before you even set foot in the shops, you ought to check online the list of one-day sales and special promotions. A glance at sites such as moneysavingexpert.com shows the lingerie store La Senza has 40 per cent off its Glamour range, both instore and online, while Woolworths continues its "50 per cent off" sale.

Even David Cameron and his wife were unable to resist the wonder of Woolworths' last days. The Tory leader and his wife, Samantha, were among thousands who took advantage of the "50 per cent off everything" offers introduced as the beleaguered chain is wound up.

Woolworths called in administrators last week after 95 years of trading as huge debts and poor sales took their toll. But its half-price offers have produced the best sales figures since it first appeared on the British high street.

The chain took more than £27 million, a one-day record, in the first 24 hours of the sale, and it stayed busy over the weekend.

In an ideal world, you will be able to enjoy your Christmas without going into the red, but if you are struggling with costs, then a credit card that offers a 0 per cent introductory rate on purchases is one option. You need to apply now, as most lenders take at least about ten days to process applications. Current best buys include Halifax's All in One Mastercard, which charges 0 per cent for ten months and 15.9 per cent after that.

One simple piece of advice is to check your wallet to see if you have any unused loyalty points that could help with the cost of Christmas. MoneyExpert.com says the average consumer has more than £300 in unspent store points and gift vouchers. Don't just swap them for money off your shopping, though – often the points are worth more if you redeem them online. For example, the Tesco Clubcard gives you one point per pound you spend, and each point is equivalent to 1p if you redeem it in store against purchases. However, if you redeem the points against special Clubcard deals, they are equivalent to 4p per point.

Household names such as Debenhams and House of Fraser are just some of the shops offering massive discounts in the run-up to the festive season. Marks & Spencer has held two one-day discount specials, with 20 per cent off most lines, and Debenhams recently launched a three-day sale.

Discounts of up to 75 per cent have seen shoppers flood the high street, prompting hopes that reluctance to spend because of the credit crunch may finally be easing. Cuts in interest rates and VAT have given extra spending power to consumers, and it is hoped they will respond by spending Britain out of the downturn.

One retail guru, Donald McFetridge, from the University of Ulster at Coleraine, described this year as a "buyer's Christmas" and advised consumers to break with tradition and haggle with retailers to get the best deals.

He cited the example of Jeffrey West designer shoes being picked up for £155 – knocked down from £235 as part of what the Northern Irish refer to as the "luck penny". And he insisted there were deals to be had on everything from televisions to sofas and luxury goods.

"I would suggest they barter, because as well as the 20 per cent off you're seeing, there's still a lot of leeway on items like electricals, soft furnishings and footwear.

"What we're seeing (in discounts] is only the tip of the iceberg. Bartering does work. In Northern Ireland, they ask for the 'luck penny', a term started in the motor trade where they'd throw in some extras like a tank of petrol."

While haggling is something not seen widely in UK stores, Mr McFetridge believes that is about to change.

"It's something we will see more of," he said. "The worst that could happen is the shopkeeper will say no. Would you rather walk out with £25 in your pocket or give it to the retailer? The canny shopper will wait as long as they can on big-ticket items. This year, the consumer has all the cards."

Wallet on the empty side? Stuff it with vouchers

THEY were often the preserve of little old ladies at supermarket check-outs, determined to use their 5p voucher off a bottle of HP sauce.

But now the voucher has been resurrected and nearly every major retailer in the country is offering discount vouchers to shoppers, allowing them to save hundreds of pounds this Christmas.

With high-street stores desperate to increase footfall and buck the financial downturn, retailers have started issuing discount vouchers to tempt shoppers into their stores.

Everyone, from John Lewis and Marks & Spencer to upmarket brands such as Molton Brown and Liberty, is in on the act, giving discounts of up to 40 per cent or offering "buy two, get one free".

The discounts work in different ways: either they are a voucher that can be taken into the store and handed over to the shop assistant at the point of purchase, or they are codes that can be used to shop online.

When an online shopper gets to the checkout page there is a box asking for the code. The shopper simply types in the code and benefits from the discount.

Among companies taking part are luxury names such as Selfridges and Glenlivet, while the high street chain WH Smith, for example, has £5 off when you spend £20 on stationary and cards if you present the voucher before 28 February.

Those who do not have access to the internet can scan the national press to pick up the discounts, with B&Q offering 15 per cent off for customers with vouchers, while Habitat is giving a 20 per cent mark-down. Fred Perry is offering 20 per cent off its clothing until Friday.

Donald McFetridge, head of retail studies at the University of Ulster at Coleraine, said some of the vouchers could be used for multiple purchases but the vouchers may not be here to stay.

He said: "This is a response to the economic situation.

"I don't think this is something we will see long term. But there's a lot to be gained from both parties – the consumer gets a discount and the retailer gets information on buying habits and consumer behaviour."

MyVoucherCodes.co.uk has created an updated list of all the latest vouchers and discount codes for shoppers to check.

It is a hugely popular discount and special offer site, with about 4.5 million unique visitors each month. It works with more than 3,000 online retailers.