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UK: Middle-class retailer Boden slashes 60 per cent from prices

UK: Middle-class retailer Boden slashes 60 per cent from prices

Write: Dorjee [2011-05-20]

Boden, which is beloved by celebrities including Angelina Jolie and Samantha Cameron for its chunky knits, ballet slippers and sensible skirts, launched its end of season sale this week.

It comes as research shows retailers are offering shoppers record pre-Christmas discounts, with an average price cut of more than one third.

The drastic reductions have been motivated by the "near total collapse" of consumer confidence with falling house prices and rising unemployment, according to analysts.

Among major players that have already slashed their prices ahead of Christmas is Marks & Spencer, which held a 20 per cent off everything sale day for the first time in four years, and Tesco, which launched an unprecedented half price sale on all Christmas food, drink, toys and gifts.

The credit crisis and fears about reduced spending during the vital Christmas period has also sparked a large rise in popularity of discount vouchers listed on websites such as moneysavingexpert.com.

The Ernst & Young's annual Christmas pricing survey found pre-Christmas discount levels have so far averaged over 37 per cent of the full selling price, compared to just over 34 per cent last year.

Retail Director Jason Gordon said stores have used every trick in the book this season to get customers through the doors.

He said: "Since the beginning of November, we've seen every conceivable promotion on the high street - from viral marketing to store-wide promotions and multi-buys. This promotional activity peaked in early December, but since then there has been a marked shift towards straight forward price cuts – at unprecedented levels across wide parts of retailers' ranges."

He predicted that the level of discounting will increase even further in the final days before Christmas and into January: "With so many retailers already offering massive discounts right across a depressed and highly competitive retail sector, it's clear that some retailers' promotional strategies will be less effective than planned.

"Consequently, we expect even deeper cuts in the last minute pre-Christmas frenzy and January Sales, as retailers desperately try to offload excess stock."