Superdrug leads discount war with sale cuts of 90 per cent

EXTREME sale discounts look set to sweep stores as Superdrug today announced it will slash prices by up to 90 per cent from Boxing Day.

The high street pharmacy will sell products for as little as 10p as it reduces the cost of 24,000 items in its 914 stores in an unprecedented £40 million bonanza.

The move indicates the growing sense of crisis among retailers and comes after an extraordinary stream of pre-Christmas discounts in shops.

Debenhams launched a five-day sale of up to 50 per cent off on Wednesday, and House of Fraser and John Lewis responded by slashing prices.

Fashion retailers, including The Gap and French Connection are also selling much of their stock at half price, and Marks & Spencer recently announced cuts of up to 30 per cent.

Most retailers are yet to announce their sale start dates or how dramatic discounts will be, but many shops are expected to bring sales forward rather than waiting until January.

The three biggest supermarkets - Tesco, Asda and Sainsbury's - have announced they will open 200 more of their stores on Boxing Day this year, while Selfridges will begin its sale of up to 50 per cent on the same day.

More than two-thirds of retailers saw sales fall in the first half of December and footfall this week is down 11.2 per cent on last year.

But Nick Bubb, retail analyst at Palii International, said: "All these sales are worrying. People are putting off spending hoping prices will get even lower and that's bad for the economy."