Big-ticket retailers race to start Sales before the VAT rise hits

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DIY and furniture retailers confident about early start to January Sales but cautious about early 2011

Big-ticket retailers have kick-started their January Sales this week to cash in on consumers bringing forward purchases to beat the VAT rise.

40% of consumers said they would bring their shopping forward because of the January 4 increase, according to research conducted exclusively for Retail Week by ICM.

B&Q pulled forward its January Sale to today and rival Wickes will launch its Sale this weekend, the same time as last year. Homebase and Focus have already startedsimilar Sales.

B&Q claimed its Sale was its “biggest and earliest ever” with up to 60% off lines including kitchens and bathrooms.

Wickes managing director Jeremy Bird said shoppers were bringing forward their purchasing because of the VAT rise, particularly on big-ticket items. However, he said he was “cautious” about how the beginning of next year would play out as a result.

Bird added that DIY January Sales had begun to “creep forward a day or two” in the past few years.

Furniture giant DFS has brought its Boxing Day Sale forward as it did last year, while ScS and HomeForm are also on Sale. DFS is using the slogan ‘At DFS you can avoid the January rush because we’re starting our Sale now’, while HomeForm is offering up to 50% off selected ranges across its Dolphin Bathrooms, Möben Kitchens and Sharps Bedrooms businesses. All promotions feature the ‘Buy now to beat the VAT rise’ tagline.

ScS is advertising a ‘massive stock Sale event in store’.

DFS chief executive Ian Filby said it was “not unusual” for DFS to go on Sale early. “It enables us to offer sharp value on an ongoing basis,” he said.

He added that it “wouldn’t surprise” him if customers were spending on big-ticket items early to beat the rise, but at the moment DFS was not seeing much evidence of that. He said: “I anticipate a very strong period from December 26 to January 4, weather permitting.” He said he expected trade to slow down at the beginning of next year. “We’re not expecting an easy year but we’re not expecting any catastrophic trading conditions either,” he said.

Tiles retailer Tile Depot also brought forward its January Sale, launching it this week, offering up to 50% off.