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Bargain hunters leave shops feeling the pinch

Monday, May 11, 2009, 11:00

CITY centre retailers say they are feeling pressured into dropping prices to maintain interest from shoppers.

Many customers are choosing discount stores and the bargains they offer over quality goods as the recession continues to bite.

Michelle Sanger, the joint owner of skate shop Dazed Retailing, in Brunswick Street, Hanley, said: "We've definitely seen a drop in the number of people coming into the store.

"At the moment it's very random. We used to be able to forecast Monday as a good shopping day, but now it can be any day of the week.

"Being based in the Cultural Quarter, we are also more susceptible to the effects of the credit crunch than retailers in the Potteries Shopping Centre for example.

"If it's raining, people don't want to venture outside after they've parked up at the centre, and this can affect stores like ours.

"Many people are looking for bargains and don't expect to pay full price for items any more. But in order to come out of the recession, we all need to spend money.

"It's important not to think of the immediate price tag on things, but to also consider the long-term future of what you're buying."

"Quality is often better than quantity, and the public also needs to support the independent stores as well as the cheaper ones like Primark so the whole economy can improve."

Sue Goodwin, a partner at family business Goodwins Jewellers, of Hope Street, Hanley, confirmed that shoppers were increasingly looking for value.

She said: "Even if the recession wasn't having a direct effect on people they felt they needed to tighten their belts.

"But for us, since January our sales have actually been up on last year.

"Our premises are out of the main shopping area and our overheads are low, so we work on much lower margins than the high street stores.

"People are shopping around more and have realised our prices are good.

"If people can afford to spend their money, then I agree it would be good for the economy if they did that.

"Savers are getting such small amounts of interest from banks and building societies that they might as well.

"If people do rein back it has a bad effect on us all. Shoppers are not necessarily looking for bargains, but they do want good value.

"And some expect retailers to lower their prices because they think we are desperate for customers."

Richard Day is spokesman for the City Centre Partnership, an organisation made up of representatives from the public sector and Hanley businesses.

He confirmed retailers were having to work harder to persuade shoppers to part with their cash.

He said: "The recession and job uncertainty is causing people to think about how they spend their money and what they should be spending it on.

"That uncertainty means they are not going to go out and spend vast amounts, and retailers are trying to respond and help where possible.

"But retailers must be able to make a living. They need to be able to make a profit to survive – and to be able to afford to go out themselves and spend as part of the money circle.

"People are still coming into the city centre to shop, which is very pleasing. But what they are then doing is working out what they can afford to buy before making a purchase.

"Discount stores are obviously doing well because they are offering goods at more affordable prices. The recession is basically making people more aware of the value of money."

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