A survey conducted by the consultants found:
• 22% of adults said they would spend more at discount supermarkets
• 19% will spend more at local retailers, because they are cheaper to get to and offer perceived good value
• 18% will be spending more on retailers’ own label products rather than national brands

Further findings included:
• 36% won’t be visiting a pub or bar in the next 12 months
• 25% will spend less on eating out at restaurants
• 35% won’t be visiting a fast food outlet over the next 12 months
• 24% will be spending more on home and garden improvements
• 17% will be spending less on clothes from value retailers like Primark

Some 84% of Britains though the UK will enter a recession or economic slowdown in the next 12 months, up from 57% three months ago.

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“During inflation, customers always prefer to shop in a value retail outlet,” says KE  Venkatachalapathy, business head of Megamart. The increased footfall is reflecting in the sales  figure of Megamart as well. While he refuses to divulge exact numbers, Venkatachalapathy says  there has been a 20% increase in sales compared to the corresponding period last year. Discounts  here vary from 10% to 30%.

“Inflation and discount retailing are directly proportional. Customers normally tend to flock to value  retail stores where they are assured of good quality at reasonable prices,” says Raghunath  Narayanan, MD of Chennai discount retailer Europa.

Discount retailing, a post World War II phenomenon, is an established market practice in countries  like the US. This concept is now picking in India, which is a price sensitive market. Discounts have  always worked well with apparel and factory outlets in the suburbs of many Indian cities and shopping  hubs like Fashion Street in Mumbai and Marathalli in Bangalore which acquired sobriquets as an  export market bear testimony to this. Now inflation has come to the aid of retail majors.

The Loot, a discount chain, has seen footfalls increase by at least 10% in the last few weeks across  its 35 stores in 15 cities. “In Mumbai alone, our footfalls are up by 17% in the last three weeks. In the  first quarter, we had sales of Rs 15 crore. In the next quarter , we expect this to climb upto Rs 25  crore,” says Jay Gupta, MD of The Loot.

In apparel, children’s wear seem to be the biggest beneficiary. “As children, especially toddlers.  Normally outgrow their clothes pretty fast, parents are flocking to discount stores such as ours more  than ever before,” says Narayanan. While the discount offered by the apparel and luggage chain is  between 25 and 30%, in kids wear it’s 30%- 40%.

The consumer base is also widening. “From a largely middle class audience, I now see people  getting out of cars like Honda Accord and Mercedes Benz outside our stores,” says Gupta.

The rush to such outlets is also due to the fact that regular apparel retailers and multi-brand outlets  mostly offer off season sale only twice in a year. “But in times of inflation and continued price rise, the  consumer is looking to cut spends across categories on a daily basis,” says Venkatachalapathy.

Brand Factory too has seen a 5%-7 % increase in our sales over the past few months. “While we  cannot say that entirely due to inflation, we cannot rule out that it has played a role,” says Vishnu  Prasad, CEO of Brand Factory. 

Coles chief Ian McLeod told analysts last week that the new concept would be tested in pilot stores in Melbourne before being introduced nationally and could be bedded down by the end of the financial year.

Coles, which was acquired by West Australian conglomerate Wesfarmers last year, tried to phase out the Bi-Lo chain in 2006 by converting Bi-Lo stores to Coles stores. The move was a disaster, and alienated budget-conscious shoppers.

Retail analyst Rob Lake says the move to build a new discount chain “makes a lot of sense”.

“They left a hole in the market that was taken up by Aldi and IGA elsewhere, and that’s a mixture of the bargain supermarket shopper and people who like cheap goods,” he says.

“It absolutely makes sense. They made a mistake in closing them down.”

The new discount chain is part of several trials at Coles supermarkets, including testing to see if consumers accept a cut of about 30% in the product range, meaning fewer brands will be stocked within each product category.

It comes as official sales figures continue to defy expectations, according to the Office for National Statistics.

Retail sales declined by 0.1 per cent in October, much better than expected by economists, who had predicted a fall of 0.5 per cent or more.

Marks & Spencer is cutting prices by 20 per cent in its clothing and homewares departments in its biggest one-day promotion for four years.

Retail giants Debenhams and Bhs were also discounting stock this week.

The high street fears the economic downturn will stop people hitting the shops ahead of this year’s festive season, with Debenhams saying next month is set to be “the worst Christmas we have ever had”.

Analysts say consumers appear to be delaying their Christmas shopping, hoping to catch bargains as shops increase their sales.

M&S began the 24-hour sale online at midnight and will keep a number of large stores open until midnight tonight to allow customers to take full advantage of the offers.

M&S spokeswoman Clare Wilkes said: “M&S customers are telling us they are feeling the pinch more than ever and they need some support to help make Christmas extra special.”

Asked about speculation that the event would dilute sales leading up to Christmas, she said: “These are really unusual times and it’s a very volatile and competitive environment and we need to trade through it.

“We need to compete for every share of the pound that is available to be spent.”

Debenhams is in the middle of a three-day £200 million price-cutting campaign across every trading area in all its stores and online.

A Debenhams spokesman said sale customers had queued outside the stores, which were “packed”.

Electrical retailer Dixons, the toy shop Hamleys, the department stores Selfridges and House of Fraser, Argos and Gap are just some of the companies using this tactic.

Once a niche phenomenon, these vouchers have come of age in recent weeks, according to research conducted for the Daily Telegraph.

More than 41 million visits to discount voucher websites were made during October by 8.8 million people, figures show from Nielsen Online, a research company that monitors internet shopping habits.

The discounts work in different ways.

Either they are a voucher that can be printed off and taken into the store and handed over to the shop assistant when you get to the till, or they can be used to shop online.

In the latter, there is usually a code, which the computer user types into a retailer’s website to take advantage of the discount.

There are now many websites, notably MyVoucherCodes.co.uk, codes.co.uk, and MoneySavingExpert.com, which collect all the codes available at any one time.

EXAMPLES:

* 10pc off any digital camera at Jessops.com , using code CAM10

* 20pc off ‘humour’ books at Waterstones.com using code HZ3229

* 20pc off everything at stationery shop Smythson.com , using code JOULES

* 30pc off everything at Gap, by visiting http://www.gapcorporateinvite.com/holiday08/en/ Expires: 30th Nov 2008

* 40pc off everything at Threshers, Wine Rack and Victoria Wine by visiting http://www.thedreamoffer.com/

* Hamleys - http://www.hamleys.com/ 10pc off when using this Discount Code: HAMRH Exp: 22/12/08

* House of Fraser – http://www.houseoffraser.co.uk/ £10 off from House of Fraser on your first online order of £50 using promotional code OFMC111 plus Free Standard UK Mainland Delivery. End Date: 24/12/2008

* Red Letter Days – http://www.redletterdays.co.uk/Home 15pc Discount from Red Letter Days when using exclusive voucher code MYVOUCHER Expires: 29-Dec-2008

* Burtons – http://www.burton.co.uk 15pc off at Burton on all orders over £60 when using exclusive code: BURTONSB Expires: 30-Nov-2008

* Hawkins Bazzar – http://www.hawkin.com/ £6 Off a £35 Spend at Hawkin Bazzar using discount code hawkin6 End Date: 30/11/2008

* Hotel Chocolat – http://www.hotelchocolat.co.uk/ 10pc off at Hotel Chocolat on all orders over £30 excluding delivery when using voucher code MYVC Expires: 31-Dec-2008

* Littlewoods – http://www.littlewoods.com/ £15 off at Littlewoods on all first orders over £25 when using promotion code: ZG228

* The Body Shop – http://www.thebodyshop.co.uk/ 10pc off any purchase online from The Body Shop when using promotional code: DHAD000451 Expires: 31-Dec-2008

* The White Company – http://www.thewhitecompany.com/ 15pc discount from The White Company on orders over £65 plus Free Delivery using promotion ode: 28CXC Expires: 21-Dec-2008

For more vouchers:

www.moneysavingexpert.com/shoppingvouchers

www.codes.co.uk

www.MyVoucherCodes.co.uk

www.Perks.com

Crowds of shoppers turned up at dawn to snare the best deals.

A worker died and at least three people were injured after being trampled by a crowd of shoppers at a Wal-Mart in the New York suburbs.

The day after the Thanksgiving holiday is viewed as an important test of how willing consumers are to spend.

Police said a throng of shoppers broke down the doors to the Wal-Mart store in Valley Stream, Long Island shortly after 0500, knocking the 34-year-old worker to the ground.

Electronics retailer Best Buy and department stores Kohl’s and Macy’s also opened their doors at dawn.

Toys R Us offered up to 60% discounts from 0500 to 1000.

Several major retailers indicated that crowds were at least as large as last year’s, but deep discounts are likely to hurt retailers’ profit margins.

“The traffic is up compared to last year, but the bag count is down,” said Marshal Cohen, chief retail analyst at NPD Group.

“There may be more casual shoppers, but they’re not buying as much as last year.”

Bargain hunters
Some shoppers queued up to bag the best bargains.
“The recession is kicking in,” Tammy Williams, 36, told the Reuters news agency as she waited for a Kohl’s store in New Jersey to open at 0400.

“I’m just looking for a bargain, anything to save a couple of dollars. I’ll save the rest for food shopping.”

“Shopping was never fun at all, and it’s less fun now,” said Manhattan resident Marjorie Daube, 59.

A spokeswoman for Taubman, which operates 24 malls in 13 states, said small domestic items – such as pots, pans and coffee makers – sold well on Friday.

Many retailers have suffered as the US economy nosedives although value chains like Wal-Mart have fared better.

US retail sales recorded the biggest monthly decline since 1992 in October as consumers cut back on spending.

It is also a period when retailers are supposed to be in the black — turning a profit. However, while retailers appear to have had a better-than-feared performance during the extended holiday weekend, it doesn’t look like sentiment has improved much.

This is likely the result of aggressive price discounting – something that isn’t very encouraging given the increased threat of deflation these days.

Credit Suisse analyst Paul Lejuez said anecdotal evidence suggests that retailers offering the best deals were the most crowded and those with no promotions were relatively empty. And while malls may have been crowded, people weren’t necessarily making purchases.

Unfortunately, even a great Black Friday won’t be enough to save the month of November, said J. P. Morgan analyst Charles Grom.

Nonetheless, he thinks investors are looking to get more constructive on retail stocks and adopt a Shakespeare-like “All’s Well That Ends Well” approach.

Favourable weather and lower gas prices could set the stage for a better-than-expected Christmas period, Mr. Grom told clients. However, the uncertainty remains elevated, he added, so a balanced approach with an overweight position in retailers with strong fundamentals today such as Wal-Mart Stores Inc. ,  BJ’s Wholesale Club Inc. , and Dollar Tree Inc., is recommended.

The analyst’s team checked stores from Atlanta to Connecticut and found shopping centres and malls with mid-and lower-priced retailers were busier than higher-end locations.

They even noticed fewer cups of Starbucks in shoppers’ hands, suggesting that people are thinking more about what they need versus what they want.

As a result, retailers serving up a strong value offering are expected to come out on top this season.

Ugly shopping-related incidents on Black Friday aside, Wal-Mart is expected to be the big winner in November. J. P. Morgan said every store it visited saw traffic up compared to last year, while most shoppers had bigger baskets and some store had lines to get in two hours before opening on Friday.

“Electronics was the first product in the cart and it was filled better than at other retailers we visited. TVs were being carried out by customers like loaves of bread.”

Looking for a special Christmas, Chanukah or Kwanzaa gift that really says “I Love You”? Then how about one that says “I Love My Schmoopie” or “I Love My Yaya”? Those are just two of the many hundreds of fun and original “I Love (Heart)” designs available from MyLoveStore.com, a top online retailer offering a variety of great gift products for the holidays including men’s and women’s apparel, mugs, pillows, magnets and a whole lot more.

Taking over 2 years to complete, MyLoveStore.com offers over 900 custom “I Love (Heart)” designs for everyone this holiday season and for almost any interest imaginable. “While there’s a lot of e-commerce ‘Love’ stores already out there, what really makes us stand apart is not only the vast array of designs available but their originality and uniqueness”, explains MyLoveStore.com founder Brian Estrin. “Each design in MyLoveStore.com is an original creation that captures the subject matter in a simple yet iconic way that makes them truly special gifts.”

MyLoveStore.com offers all of their heart slogans on a variety of shirts and clothing for men, women and children, as well as on bumper stickers, hats, tote bags, keepsake boxes, refrigerator magnets, buttons, and much more.

With the holidays fast approaching, online stores like MyLoveStore.com are becoming more and more the destination for people interested in purchasing a unique gift for a loved one at a reasonable price. The gifts come in a variety of sizes where applicable, and usually ship within 2 to 3 days of ordering with express shipping available for those in the market for a last minute gift. All products sold also come with a no-hassle, 30 day money back guarantee.

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Variety Of Gifts Available From The Retailer This Christmas

As its unique name suggests, at www.jungleninja.com a ninja monkey stalks the Amazon.ca jungle 24 hours a day, constantly looking for discounted products. The site is updated automatically when any Amazon item is reduced by 20 per cent or more.

Consumers can organize these discounted products using selection criteria that sort results by sales rank, percentage of savings, price or title.

“Shopping on Amazon is really like a cyber jungle with huge discounts hidden all over the site,” said Evan Falk, a Web developer in Winnipeg, Manitoba. “With the economic downturn, my colleagues and I created this free alert so consumers, including ourselves, could find the best bargains fast.”

With a simple click, shoppers can instantly view thousands of deeply discounted items on Amazon.ca – like Microsoft Office 2008 for Mac. Originally listed at $629.99, the Amazon price is $319.99, giving consumers a whopping 49 per cent discount. Other bargain prices include a 40 per cent discount for a 12-inch Aluratek Digital Photo Frame. From books to DVDs, music and electronics, Jungleninja does the searching for price-conscious shoppers this holiday season.

Online shopping is a growing trend, with Statistics Canada reporting last month that sales increased by 61 per cent from 2005 to 2007. More than one-third of all Canadians over the age of 16 now purchase items through the Internet.

Once the stores open the company’s portfolio will be extended to around 240 shops, after it opened 40 new sites this year.

Chief executive Jim McCarthy said: “Times are tough and customers know Poundland offers quality brands at the incredible £1 price point on all products every day.

“We are convinced that Poundland will continue to help shoppers through the tough times in even more locations next year.”

This year the discount firm revealed annual profits until the end of March were up by 122%.

McCarthy said at the time: “Poundland’s unique single price strategy is providing even greater value. We are perfectly positioned to take advantage of customers’ flight to value.”

By contrast, Woolworths will shed 27,000 jobs after its administrators Deloitte failed to find a buyer for the company.