Stores undercutting internet

By ELIZABETH HOPKIRK FOR MAILONLINE
Updated: 07:22 EST, 13 December 2005

THE High Street is fighting back against the internet in the battle for Christmas shoppers.

With more people shopping online because they believe it is cheaper, retailers are retaliating with heavy discounting. An Evening Standard survey has found shops are undercutting the internet on key products, from cameras to books to perfume (see table below).

Once delivery charges are factored in, the web compares even more poorly. Yet the pressure is very much on the high street, with the number of shoppers down 3.4% in November, according to researchers Footfall.

'The internet is a big growth area and High Street retailers definitely see it as a threat,' said Fiona Bell, business director of analysts TNS Fashion Trak.

'There have been some particularly good pre-Christmas offers and discounts on the high street.'

The Standard surveyed high street shops for their best Christmas offers, then tried to beat them online, visiting top retailers such as Amazon and price comparison sites such as Kelkoo.

In the vast majority of cases the high street won hands-down. Even when the internet won, it was often only by a negligible amount.

We also discovered some online purchases will not be delivered in time for Christmas. Amazon beat the £60 Boots price for a Philips Philishave Coolskin shaver by just 3p but will not deliver it until after Christmas. A Hitachi 7in portable DVD player, which we found for £79.99 at Argos, cost £140 on the cheapest website, plus £5 delivery.

The high street can even beat brands' own websites. A three-for-two offer at Boots allowed us to buy a selection of The Sanctuary products for £19.85. Ordering them from the brand's own thesanctuary.co.uk site would cost £21.85 with postage.

'High Street shops have people checking online prices and can react very quickly if they need to,' said Ms Bell. 'But shops have to be careful not to diminish the value of their product. So, rather than sale signs, some are quite subtle, such as three-for-two offers in-store.

'They have to pitch it as a bargain, not something they are desperately trying to get rid of.'

Convenience is the internet's big advantage, said Jeffrey Young, managing director of retail consultancy Allegra Strategies. He said: 'The motivating factor is being able to do it all from home. Yet, although we all complain about it, nine in 10 people prefer to put themselves through Christmas shopping in the high street.'