Early sales may prove detrimental for retailers

Profits at Britain’s leading retailers are set to slump after desperate 

stores slashed prices over Christmas in a bid to lure shoppers.

Scenes of scrambling shoppers eager to pick up bargains in the sales may look like good news, but the price for retailers will be a squeeze on profit margins and damage to customer loyalty, experts warn.

Marks & Spencer could be heading for its worst profit figures for five years, according to City analysts, after it launched unprecedented pre-Christmas sales in an attempt to drum up business.