Prices 'cut 70%' at Focus DIY sale as stores close

By This Is Money
Updated: 09:08 EDT, 16 June 2011

Failed DIY retailer Focus today promised further discounts of up to 70% on its remaining stock as it gears up to close its stores completely.

Focus DIY revealed a calendar of deadlines for store closures on its closing-down website today, along with a promise of discounts up to 70%.

The earliest closures are this weekend on Sunday 19th, with stores closing in tranches on subsequent days until the end of the month.

The closing-down sale began towards the end of last month after Focus's administrators had failed to find a buyer for the group's remaining 123 stores.

Although massive reductions were promised, many punters were reportedly disappointed at discounts in the sale.

That has been the least of worries for Focus staff, however: as administrator Ernst & Young appointed Gordon Brothers to close down the stores three weeks ago, the vast majority of 3,000 workers had to begin the search for alternative employment.

The administrator did save some 900 jobs by selling more than 50 stores to rivals including B&Q and Wickes since the company went into administration in early May.

Struggling retailers in all sectors have brought forward their summer sales in a desperate bid to turn around a slump in takings.

A 1.4% slump in retail sales last month was revealed today and that wiped out gains in a relatively feel-good April on the High St. Spending also fell by 2.2% in May compared with a year ago as shoppers made cutbacks.

Debenhams recently cut prices on two million products by up to 50%, while House of Fraser responded to the news with its own half price sale. With its price promise of being 'Never Knowingly Undersold', John Lewis will be dragged into the fray, having to match the reductions offered by its rivals.

Gap, Boots, Topman and the major supermarkets are running their own price cuts either in high street outlets or through their websites.

Consumers are cutting back on high street spending amid a squeeze on family budgets caused by big increases in essential household expenses, such as food, energy, petrol and insurance.

Job fears, low or non-existent pay increases and a faltering property market are also having a knock-on effect.

A spokesman for Debenhams said: 'The scheduled in-store and online sale, which starts slightly earlier than last year, begins today and falls against a continuing backdrop of food inflation at a two-year high and a 19% rise in gas bills.'

Its deputy chief executive, Michael Sharp, said: 'This week our biggest ever half price sale will offer thousands of lines at great reductions in store and online.

'Our sales move will clearly be welcomed by customers.'

In recent days, Jane Norman, the fashion retailer with more than 200 stores, has been put up for sale by its banks following a period of poor trading.

HMV has been forced to sell Waterstone's, Mothercare is closing 110 outlets, while JJB Sports, Thorntons and Comet are also shutting some shops. Hundreds of Oddbins, Alworths, Officers Club and Easy Living outlets have put down the shutters after they went into administration.

Other well-known names such as the Dixons group and Home Retail, which includes Argos and Homebase, have issued profits warnings. Hundreds of independent stores have also been forced out of business in the past 12 months, turning many areas into ghost towns.

Bargain-hunters wishing to find their local store can use this store finder. The closing down website also offers this alert service to sign-up for emails and texts about bargains.