Littlewoods to slash prices

Littlewoods is to cut prices by up to 20 per cent in its high-street and home shopping divisions in an attempt to position itself as the UK’s leading value retailer.

The announcement follows yesterday’s release of figures showing retail trading profits had plunged £24m to £81.3m for the year to the end of April. The company blamed increased price competition in the clothing market for the profit drop.

Littlewoods says the cuts will be made possible by integrating its home shopping and high-street buying departments. Own-label catalogue brands, such as Definitions and Essentials, will be introduced in high-street stores, as will the payment methods and credit facilities offered only to catalogue customers.

A Littlewoods spokeswoman says: “We are keeping a keen eye on the discounters to ensure we remain a value retailer.”

It is understood that a £5m above-the-line campaign, by ad agency HHCL, will focus on value and payment facilities. Littlewoods brand director Gillian Wilmott says: “Our unique positioning will be in our ability to make a profit offering credit to people whom the banks would not give a credit card to.”

One City analyst says: “Littlewoods knows it is time to catch up with discounters such as Matalan.”

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here