'Black Friday' Discount Day Reaches UK

Some of the UK's biggest retailers are cashing in on a US tradition which sees millions of frenzied shoppers make the most of discounted prices.

Amazon, Asda and Apple are among the companies that have launched so-called Black Friday sales in Britain - despite many consumers being unaware of the custom.

In the US, thousands of stores discount their prices the day after Thanksgiving, and many open for longer hours.

Last year a record number of people visited stores over the Black Friday weekend, spending a total of $52bn (£32.6bn) - an average of around $400 (£250) each, according to the National Retail Federation.

And this year, some eager shoppers have been caught on camera phones battling to get to the best bargains first, after queuing for hours. 

Many retailers opened their stores at midnight, and this year the trend to open at 8pm on Thursday started to spread.

Some US stores were frantic

While the shift was denounced by some store employees and traditionalists as pulling people away from families on Thanksgiving, many shoppers welcomed the chance to shop before midnight.

"I think it's better earlier. People are crazier later at midnight," hotel worker Renee Ruhl, 52, said as she shopped at a Target store in Orlando, Florida.

Online retailer Amazon was one of the first companies to bring the trend to the UK.

It launched a week-long Black Friday sale on Monday, which it claims "offers millions of pounds of savings on hundreds of Christmas gifts".

Tech giant Apple and Asda, owned by Walmart, are also hoping to make the most of the Christmas shopping rush by offering one-day discounts of their own.

Hotel Chocolat emailed customers to say that as it offered US customers 20% off it would do the same for UK buyers.

"There are more retailers launching sales this year than ever before - and many British consumers are becoming aware of the tradition for the first time," Retail Week's Gemma Goldfingle told Sky News.

"In the US it is an absolute phenomenon, with people queuing up all night to snap up the best deals."

Amazon launched its sale on Monday

In Orlando at least one family camped outside a Best Buy shop for a full week, sleeping in two tents.

"It has not reached that level here and whether it ever will is another matter," Ms Goldfingle said.

She said that Americans have Thanksgiving to kick-start the event – whereas in the UK it is just a normal day. Boxing Day, when UK sales traditionally begin, is a normal work day for Americans.

"A lot of British retailers would prefer not to have it," Ms Goldfingle said.

"They want to be selling items at full price ahead of Christmas, especially given the tough economic conditions."

While a limited number of UK chains have labelled their sales as Black Friday, many others have needed to show weekend price drops to lure customers.

Furniture chain dfs has taken to advertising in newspapers about its discounts while Topshop offered online weekend deals.

Black Friday, which is thought to refer to the first day of the year that retailers go "into the black", comes just ahead of Cyber Monday - which the marketing industry claims is the busiest day in the online shopping calendar.

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Cameron: EU Deal 'Just Not Good Enough'

What Now For EU Budget?

Updated: 10:16pm UK, Friday 23 November 2012

By Adam Boulton, Political Editor

The 27 EU member states did not agree a budget for the next seven years at the summit in Brussels. But David Cameron will be able to go home and tell Eurosceptic conservative backbenchers "so far, so good".

In his own words the Prime Minister "successfully defended" Britain's contributions rebate and rejected a deal which "was just not good enough".

Mr Cameron also insisted that Britain had not been isolated but was joined in its demands for lower spending by other big net contributors including Denmark, Sweden, Finland, Norway and Holland.

This Nordic European grouping also claims the support of the key deal-maker and biggest funder, Germany. But in her public comments Chancellor Angela Merkel was more circumspect, merely noting, as she had since arriving in Belgium, that the gap between the want-mores and the want-lesses was too big to bridge at this meeting.

She and the hapless Herman Van Rompuy, who has the thankless task of chairing these negotiations, have the same message - it is more important to get it right than to rush for a deal.

Mr Van Rompuy now has "weeks" to try to find an agreement. When EU leaders come back to the budget early next year (having put the matter to one side at the next summit in December) they will be on deadline.

If an agreement is not reached then, funding will be rolled over on an annualised basis - bad news for Britain because budgets will automatically increase, and worse news for countries such as Denmark and Holland who have not yet secured their rebates.

So doesn't that mean that all the countries who want more have to do is sit it out? Not quite. Of the 27 member states nine countries are net contributors, including all the Nordic holdouts, and around 15 are significant recipients. Ultimately all the winners are vulnerable, especially if Germany joins in so much as threatening to turn off the tap.

The leaders calling for further cuts all make the same argument - they are imposing austerity at home and it is not acceptable to their voters that the European slice of their budgets simply should be exempted from a squeeze.

The Council President, Mr Van Rompuy, and Jose Barosso his counterpart at the EU Commission probably made a mistake in refusing to table any cuts in the administration budget - pay and perks for bureaucrats. Mr Cameron contrasted this with the "difficult decisions" being imposed on the UK civil service and insisted that the EU could not live "in a parallel world".

But ultimately these are points of principle rather than matters of real significance to national budgets. The UK's government spending now runs to about one trillion euros a year - the EU is arguing about one trillion euros over seven years divided between 27 nations. Of that the "administration" budget is just 6%. Which means that when Mr Cameron talks about saving a billion euros by, for example, stopping automatic promotion of civil servants, he really is talking about a drop in a bucket.

This is perhaps why the economics professor who now is Prime Minister of Italy, Mario Monti, accused Mr Cameron of being an irrational "demagogue". Italy is now in an alliance with France supporting the claims of those who want a bigger budget in the interests of "solidarity". Both Italy and France are net contributors to the EU overall but they are also big recipients of the Common Agricultural Policy, which accounts for some 40% of EU spending.

Perhaps the most significant thing that happened at this summit was that there was no Franco-German axis. Chancellor Merkel and President Francois Hollande took opposing positions.

What's more Germany now seems concerned not to isolate the UK, because of fears that another confrontation could move Britain out of the Union altogether - ceding much greater influence inside to socialist-led France and its Mediterranean allies.

As the European Union scrambles to find a deal Germany, Britain and their North European allies would seem to have the stronger hand - following the time-honoured principle of who pays, plays - provided that their alliance holds together.

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Tax Backlash Prospect For Independent Shops

By Poppy Trowbridge, Business & Economics correspondent

Independent businesses could benefit from public uproar over low rates of corporation tax paid by global giants Starbucks, Amazon and Google, according to retail experts.

The backlash has been prompted by the revelation that Starbucks has paid just £8.6m UK corporation tax in the past 13 years, on sales of £3.1bn, when most businesses will pay a corporation tax rate of 24% this year.

In 2011, Google paid £6m tax against sales of £395m, while Amazon paid no tax at all in the UK - despite sales here reaching £3.3bn.

Matthew Stych, research director at analysts Planet Retail, believes British retailers can make the most of the furore by highlighting their own contributions and good practices.

"It's a golden opportunity that comes along once in a decade or so, to really capitalise on the negative publicity that some global retailers are receiving at the moment," he says.

"I think it's a huge opportunity that independent retailers in the community must seize now".

Google and Amazon are also accused of paying low taxes on big profits

Independent booksellers in Hertfordshire are doing just that. With support from the Booksellers Association they have launched an advertisement campaign to publicise the fact they pay their taxes.

"People need to think about where they are spending their money and we are hoping that this campaign will bring that to their attention," said Sheryl Shurville, co-owner of Chorleywood Bookshop.

But other analysts are not convinced such consumer campaigns will have any long-term benefit.

"We're unlikely to see any massive dip in the sales of these companies under scrutiny," says Douglas McNeill, chief analyst at Charles Stanley.

"Whilst ethical issues can temporarily make people pause for thought, consumers make their choices on the basis of eternal basics of price, quality and convenience."

Mr Stych says large brands may yet find a way to turn around the negative publicity.

"As far as Amazon and Starbucks are concerned, I think there's an opportunity to strike a more conciliatory note," according to Mr Stych. 

"This is for them also an ideal opportunity to regain or re-forge that bond with local consumers".

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EU Budget: 'Long Way To Go' Before Deal

David Cameron has demanded billions in pay and pension cuts from the EU's civil service in support of austerity-hit workers across Europe.

Ahead of a crucial budget summit last night, he presented EU heads with a paper setting out how Brussels could slash at least six billion euro (£4.8bn) off its staff costs at a stroke by upping retirement ages, lowering pensions and trimming lavish salaries.

President of the European Council Herman Van Rompuy and President of the European Commission Jose Manuel Barroso were caught by surprise during the private talks with the Prime Minister.

Mr Cameron's position was to impose a real-terms freeze in spending in common with national public sector cuts, including a solidarity gesture by targeting the 60bn euro-a-year (£48bn) administrative budget which pays the 40,000-plus civil service behind the Commission, Council and European Parliament.

Following the meeting Downing Street said there was "a long way to go" before EU leaders could agree a long-term budget.

A Downing Street spokesman said: "The Prime Minister set out our position that while the latest proposals were a step in the right direction, they did not go far enough and that we think more can be done to rein in spending."

Mr Cameron said he would be fighting "very hard" to secure a good deal for British taxpayers and to keep the rebate negotiated by Margaret Thatcher in the 1980s.

Cameron meets Barroso and van Rompuy prior to the summit

"These are very important negotiations. Clearly at a time when we are making difficult decisions at home over public spending it would be quite wrong - it is quite wrong - for there to be proposals for this increased extra spending in the EU," he said.

He has welcomed proposals from Mr Van Rompuy which would deliver a small real-terms cut in EU spending commitments, but has made clear he is unhappy with other details of the package, which demands a reduction in the £2.9bn UK rebate.

The start of the meeting was delayed until mid-evening as the rest of the EU's leaders held their own "confessionals" throughout the day, setting out their positions on how much cash the EU should be given to pay for policies between 2014 and 2020.

A pre-summit compromise is already on offer - a seven-year budget "envelope" of 973bn euro (£785bn) for 2014/2020, a cut of nearly 5bn euro (£3.8bn) compared with the 2007/2013 ceiling.

The move was seen in Downing Street as being in the right direction - although the "cut" is in a spending ceiling which officials say has not been reached.

It is also above the 886bn euro (£712bn) originally pitched by the Treasury as in line with the real-terms freeze Mr Cameron wants.

The EU headquarters in Belgium

But in the complex world of EU budget economics, with financial "commitments" different from "payments", a range of calculation options, rebates for some countries, and contributor and beneficiary member states, Mr Cameron and his colleagues have plenty of scope for claiming summit success.

The Prime Minister's allies for budget belt-tightening, including Sweden and the Netherlands, have demanded hefty financial cuts.

Germany, France, Finland and Austria want to freeze the maximum Brussels can draw from member states every year - leaving plenty of scope to argue over the actual spending figures within the ceiling.

And 15 countries, led by Poland, are backing budget increases, not least to preserve the scale of cash aid they receive as "net beneficiaries" from the EU kitty.

Britain is arguing for a shake-up in EU spending priorities, cuts in agriculture spending and subsidies - fiercely defended by France - and cuts in EU staff levels and pay and perks, in line with national civil servants.

But the European Commission still insists that a spending increase is necessary, not least to pay for policies already agreed by member states.

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'Black Friday' Discount Day Reaches UK

Some of the UK's biggest retailers are cashing in on a US tradition, slashing their prices ahead of Christmas.

Amazon, Asda and Apple are among the companies that have launched so-called Black Friday sales in Britain - despite many consumers being unaware of the custom.

In the US, thousands of stores discount their prices the day after Thanksgiving, and many open for longer hours.

Last year a record number of shoppers visited stores over the Black Friday weekend, spending a total of $52bn (£32.6bn) - an average of around $400 (£250) each, according to the National Retail Federation.

Whereas many retailers open stores at midnight, this year the trend to open at 8pm on Thursday has started to spread.

While the shift was denounced by some store employees and traditionalists as pulling people away from families on Thanksgiving, many shoppers welcomed the chance to shop before midnight.

"I think it's better earlier. People are crazier later at midnight," hotel worker Renee Ruhl, 52, said as she shopped at a Target store in Orlando, Florida.

Amazon launched its sale on Monday

Online retailer Amazon was one of the first companies to bring the trend to the UK.

It launched a week-long Black Friday sale on Monday, which it claims "offers millions of pounds of savings on hundreds of Christmas gifts".

Tech giant Apple and Asda, owned by Walmart, are also hoping to make the most of the Christmas shopping rush by offering one-day discounts of their own. 

"There are more retailers launching sales this year than ever before - and many British consumers are becoming aware of the tradition for the first time," Retail Week's Gemma Goldfingle told Sky News.

"In the US it an absolute phenomenon, with people queuing up all night to snap up the best deals.

"In Orlando at least one family camped outside a Best Buy shop for a full week, sleeping in two tents.

"It has not reached that level here and whether it ever will is another matter."

She said that Americans have Thanksgiving to kick-start the event – whereas in the UK it is just a normal day. Boxing Day, when UK sales traditionally begin, is a normal work day for Americans.

"A lot of British retailers would prefer not to have it," Ms Goldfingle said.

"They want to be selling items at full price ahead of Christmas, especially given the tough economic conditions."

Black Friday, which is thought to refer to the first day of the year that retailers go "into the black", comes just ahead of Cyber Monday - which the marketing industry claims is the busiest day in the online shopping calendar.

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Online Retailer Makes Bid To Buy Comet

The entrepreneur behind Appliances Online has tabled a bid for Comet in a move that could see the failed electrical chain disappear from retail parks and high streets.

More follows...

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Renters Warned: Beware Of 'Rogue' Letting Agents

The lettings sector needs more regulation, the Royal Institution of Chartered Surveyors (RICS) has said, after revealing a rise in the number of so-called rogue agents.

Those renting properties are at risk of being taken advantage of by unscrupulous agents amid "a total lack of effective regulation", RICS warned after surveying 2,000 people.

The organisation said that renters had come to expect "worryingly low standards", with two thirds of those questioned saying they had not been given an inventory when they moved into a rented property in the last two years.

Lettings agencies do not have to conform to codes of conduct, RICS highlighted, and can be set up by people without relevant qualifications, knowledge or understanding of the rental process.

A clampdown is needed to prevent the sector turning into "the property industry's Wild West", RICS added.

Peter Bolton King, global residential director at the organisation, said rogue agents were taking advantage of the UK's booming rental market.

Demand for rental properties has shot up as people struggle to afford the deposit required to buy their own homes, or fail to meet banks'  tough borrowing conditions.

"A good lettings agent can be worth their weight in gold for both landlord and tenant," Mr King said.

"However, there are too many corrupt agents that do not belong to any professional body who are taking advantage of the current gap in regulation, putting consumers at risk."

He added that a rogue agent could land a tenant with problems including lost deposits, broken agreements and excessive charges.

"What we would like to see is the Government taking direct action on this and introducing a single regulatory and redress system for both sales and lettings agents to make sure they are fully accountable," he said.

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Mothercare Reports A Loss As UK Sales Fall

Mothercare's chief executive insists the business is "on track", despite reporting another fall in UK sales.

Like-for-like sales in Britain fell 3.4% in the UK in first half of the year - although this is an improvement on the 7% slide seen a year ago.

Sales overseas, where the retailer plans to open 150 stores this year, grew by 4.4% in the six months to October 13.

Although sluggish demand in the eurozone - its biggest international market - hit the rate of international growth.

After one-off charges, Mothercare, which sells prams, car seats and childrens' clothing, reported a loss before tax of £27.4m.

Its underlying performance - if the one-off items are stripped out - was stronger, with its pre-tax loss rising from £4.4m to £0.6m.

New chief executive Simon Calver has been charged with cutting prices and improving Mothercare's delivery service to help it better compete with rivals, including supermarkets.

His three-year turnaround strategy saw the group close 31 stores in the UK in the first six months, with plans to close 19 more this year.

He told Sky News the results showed progress at the company, which has failed to keep up with its competitors over recent years.

"We've done a lot on the management team, we've done a lot on our products and the value we offer to the consumer," he said.

But he added that the group had expected sales to "take a while" to turnaround.

"Early signs are encouraging but we're definitely on track," he said.

Mothercare has over 1,300 stores across the world, including 280 in the UK.

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Cameron To Insist On Austerity In EU Budget

By Robert Nisbet, Europe Correspondent

David Cameron travels to Brussels later insisting that austerity being enforced around Europe is reflected in the EU's budget.

He will join leaders from all 27 countries at a special summit to set the European Union's spending limits from 2014 to 2020.

It is a complex and deeply divisive process, with the UK balking at the European Commission's opening gambit - to increase the overall spending ceiling to a maximum one trillion euro.

This was flatly rejected by Britain and nearly all the net contributors to the European Union.

The European Council, which represents the interest of the member states, chimed in with its own plan, which represents a real-terms 2% cut from the spending ceiling approved for the current seven-year period.

But the proposal, penned by the Council President Herman van Rompuy, would reduce Britain's rebate and only contains a 1% reduction under so-called "Heading 4", which details the EU's spending on administration costs.

Mr Cameron, and other leaders, believe Brussels should accept some symbolic reductions in red tape and make deeper cuts to the legions of Eurocrats who work in the EU institutions.

The British Prime Minister believes Mr van Rompuy's proposals are moving in the right direction, but he needs to go further.

He has also insisted that the UK's £3bn a year rebate, which was negotiated to compensate Britain for money disbursed to other nations, is not up for discussion.

He told MPs yesterday he would be "fighting incredibly hard" to get the best deal for the UK, but he could use the veto to protect British interests.

The budget has to be agreed by all 27 members and by a majority in the European Parliament.

Other countries also have reservations with the proposals on the table: France and Ireland want to protect agricultural payments to their farmers, Italy is unhappy that other countries' rebates due to expire in 2013 might be renewed while Denmark wants to negotiate its own rebate.

Earlier this month Mr Cameron was blindsided by a Tory rebellion calling for a budget cut, not just a freeze. He may yet face their wrath.

The budget being discussed is about setting an absolute limit on EU spending, but the money spent is always considerably less.

So while the PM might be able to claim a victory in securing a freeze in total EU spending limits, UK taxpayers may still have to fork out more cash to Brussels.

If no agreement is reached, more summits will be held in the new year.

If there are still problems, the annual budget will roll over with an extra 2% added to take account of inflation.

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Supermarkets 'Over-Promote' Unhealthy Food

Supermarkets are over-promoting fatty and sugary products using special offers and price reductions, according to a study.

Professor Paul Dobson, from the University of East Anglia (UEA), led a three-year study of consumer behaviour towards food and the impact on overeating and food waste.

He concluded that unhealthy foods receive too much promotion from supermarkets, and said the food industry must do more to promote healthy living.

"It is simply irresponsible for supermarkets to overly promote foods with high sugar and fat content," he said.

"The food industry must play a much greater role in promoting healthy diets.

"Food producers can do more by reducing the fat, sugar and salt content of processed foods, while food retailers can ensure that healthy and nutritious choices are available and affordable to all consumers and that they practice responsible marketing."

Prof Dobson said that if retailers and producers did not take responsibility, regulation might be needed.

Supermarket giants including Tesco and Asda were the focus of the study

Special offers are worth more than £50bn in sales to supermarkets and account for over a third of all consumer spending.

The research team analysed weekly price and nutrition data of a full range of food and drinks products sold over a year by four UK supermarkets - Tesco, Asda, Sainsbury's and Ocado.

They found a bias towards sugary products for price promotions, while straight price discounts were on average more skewed towards unhealthy products.

Special offers also tended to be slanted towards more unhealthy products, especially those with high sugar content.

However, multi-buys were on average more biased towards healthier items.

"While price promotions can offer savings for consumers they may not be so good for our waistlines and health," he added.

"With almost a quarter of the population classed as obese, overeating and food waste are serious concerns for modern society."

Prof Dobson is outlining his findings at a lecture in London.

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