Face of M&S: Lily Cole models a Blue Coat from the store’s collection Mr Archer predicts that rates will come down again in November, to 4 per cent, with the cost of borrowing possibly falling to 2.5 per cent or below next year. A succession of High Street chains have warned in recent weeks that profits will be down, including the owner of DIY chain Wickes, sports retailer JJB Sports and electrical group DSG, owner of Currys and Dixons.
Nick Bubb, retail analyst at brokers Pali International, said: ‘The next week is a key one when the graph really needs to start to climb towards Christmas. ‘If they don’t start beating last year’s comparable figures, we could be looking at Armageddon. ‘People will still buy presents at Christmas but there is a danger they will spend 5 to 10 per cent less than last year.
That is extremely bad news for companies like Debenhams, given all their debt.’ There was some good news for shoppers yesterday as Tesco became the latest to respond to calls from Gordon Brown to cut the cost of petrol. The supermarket giant knocked at least 3p off the price of fuel at hundreds of outlets. Tesco, which is the UK’s biggest petrol retailer, is reducing the price of unleaded to 99.9p at the majority of its 430 forecourts.
The decision follows a cut made two days ago by rivals Asda at all its 170 outlets, together with similar reductions by Morrisons. Motorists in most of Britain will now be able to find a station offering unleaded at below Ј1 a litre for the first time since last December - however, some will miss out of the full benefit of the cuts. Unlike Asda, Tesco tailors its prices to local competition. Consequently, residents liing in those areas where Tesco has no rivals will be paying more.