26 Dec 2010

Bargain hunters brave Boxing Day sales

Hundreds of thousands of people have flocked to shops across the country to search for a Boxing Day bargain ahead of the impending VAT rise.

Despite the Sunday trading hours the Boxing Day sales got off to a traditionally frantic start, boosted by the wish to pick up a post-Christmas deal ahead of the impending VAT rise in the New Year.

Retailers were offering larger-than-normal bargains in a bid to repair damage done by the recent freezing temperatures and in expectation that shoppers would take advantage in the rise in prices. VAT is set to rise from 17.5 per cent to 20 per cent on 4 January.

The fact 26 December falls on a Sunday means trading hours are restricted to six hours. Shoppers coming into London also had to contend with a Tube strike by London Underground workers.

Bargain hunters brave Boxing Day sales

Comparison website moneysupermarket.com predicted this year’s Boxing Day sales could be the biggest ever, saying the UK is set to spend £323m online in a single day.

Selfridges was expecting 80,000 people to pass through the doors of its Oxford Street store, with discounts of up to 75 per cent.

“Despite the fact we are opening at 11am due to Sunday trading, the first three shoppers started queuing at 11pm last night and by 4am there were 60 people waiting,” a spokeswoman said.

“We expect bags and shoes to sell really well, that’s where shoppers will flock to first.”

Online consumers were set to spend record amounts retailers cut prices to make up for last trade caused by the snow. While some retailers started sales days ago, the bulk began online from midnight.

An estimated 4.8 million people were expected to spend around £153m on Christmas Day, according to the Interactive Media in Retail Group (IMRG). Boxing Day spending could top £300m for the first time, it said.

The figures are backed by payments company Visa Europe, which estimates that 960,000 transactions worth £36m will be made on Visa cards alone today. Visa transactions are expected to account for at least £1 in every £4 spent.