The credit crunch is hit the High Street once again last month, with some retailers taking drastic measures to combat reduced consumer spending.
Retail sales dropped 0.1% overall in October – a drop which has mainly been attributed to the recent credit crisis, as more families face up to the possibility of redundancies and looking to juggle existing debt problems, such as previous loans and credit cards.
With unemployment rising and consumer debt repayments from previous borrowings impacting sales, which fell once again in September although by a lower rate than expected, leading retailers are taking to holding one-day sales events in an attempt to boost activity in the run up to Christmas.
Marks & Spencer are today holding their first one-day sale in four years whilst other retailers including Dorothy Perkins, Burton, Debenhams, Selfridges and John Lewis are all planning short-term price cuts in the run-up to Christmas.
But whilst the price reductions are likely to be welcomed by consumers looking to cut the cost of Christmas, it is believed that the tactics, along with recent interest rate reductions, may not be enough to boost sales before the new year
Elsewhere on the High Street, Woolworths are reportedly in talks to sell their 800-store chain for just £1, having made pre-tax losses of £90.8m in the first half of this year.
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