23 October 2005
SundayMirror
Stores slash prices 50%
By Stephen Hayward Consumer Correspondent
A CHRISTMAS price war has seen the cost of top-selling toys and gifts slashed by more than 50 per cent - with two months still to go.
Stores are desperate to halt tumbling profits amid the biggest slowdown in consumer spending for two decades. Last night experts predicted high street chains will offer even BIGGER discounts in a bid to speed up festive spending.
Millions of pounds have already been wiped off the price of "must-have" gifts from family board games like Monopoly to more modern toys such as the vampish Bratz Rock Angelz dolls.
And John Lewis are running a "buy one, get one half price" deal on board games including Buckaroo, Cluedo, Mousetrap and Mastermind.
The early promotions follow warnings of a "retail Armageddon" this Christmas, with sales at their weakest for more than 20 years.
Several high-profile names, including department store Allders and sportswear chain Allsports, have gone out of business this year and there are fears more will go bust in early 2006 when most shops are due to pay their quarterly rent.
Woolworths' marketing director Steve Robertson said: "The market is more competitive than ever. We are running half-price promotions on many toys and gifts and we don't rule out further price cuts."
Asda director Tony Page says they are undercutting rivals by up to 30 per cent to capture a bigger slice of the UK's £550million Christmas toy market. He said: "With purse strings tightening and more people watching the pennies, our job is to keep prices even lower."
A spokesman for the British Retail Consortium said: "Retailers are under a lot of pressure. Christmas can account for up to two-thirds of the annual turnover for some stores."
