London retailers face bleak January (From This Is Local London)

London retailers face bleak January

11:19am Monday 5th January 2009 in

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London’s retailers are facing an even tougher start to the year than usual with shops being forced to slash prices to lure customers through the doors, experts have warned.

Across the country, shoppers fought off the cold weather and economic gloom this weekend to hit the high street in greater numbers than last year, according to figures published.

Over Friday, Saturday and Sunday, the number of people out looking for bargains in the post-Christmas sales was up 2.7% on the same period in 2008.

However, while the high footfall will encourage retailers, it will not necessarily translate into greater revenue, with shops forced to cut prices to tempt shoppers to spend their cash, Experian warned.

British Retail Consortium spokesman Richard Dodd said: "Our impression is that the initial flurry of spending that happened with the start of the post-Christmas sales is now fizzling out.

"Customers may have been persuaded to come out in large numbers but the picture is not rosy at all.

"While footfall is important, what actually matters is how much customers are spending and the extent to which retailers are having to discount to generate that spending.

"Conditions are very tough for retailers. Customers are short of spare money and nervous about spending what money they've got."

Marks & Spencer shares rose 4% despite fears the department store chain will post a grim Christmas trading update later this week.

M&S, as well as other high street giants like Debenhams and Next are all in the firing line as major chains bear the scars of a bleak trading climate.