Business owners across the city are pulling out all the stops to persuade customers that Dundee’s local retailers are the place to spend their hard earned cash, offering a barrage of discounted deals and bargains.

Alan Mitchell, Chief Executive of the Dundee & Angus Chambers of Commerce, said retailers are facing a difficult challenge to convince people to part with their cash this year but hopes businesses will experience a positive holiday season in spite of the financial crisis.

He said, “Obviously we would hope that it will be an excellent festive period for local retailers. The interest rate cuts made recently have helped and we are expecting government tax changes next Monday which will hopefully look to boost the economy and put money back into people’s pockets on the run up to Christmas.

“Dundee’s reputation as a retail destination has been growing over recent years. The Overgate and the Wellgate and the series of shops in between are fantastic. All of that combined leads to retailers having every chance to attract customers.

“I don’t think retailers are expecting to see record sales this Christmas given the circumstances — that would be an unrealistic expectation — but we would hope retailers have a solid and successful Christmas.”

Cut-price items and sales usually reserved for Boxing Day have been applied in many stores across the city in an attempt to attract custom.

Peter Leyland, chairman of Dundee’s City Centre Action Group, said he doubts city-centre sales will decrease, but believes shoppers will be more aware of pricing than ever before and will shop around for the best bargains.

“I don’t think the shops will be any quieter, but prices have definitely come down in a lot of shops,” he explained. “It is definitely tough for traders at the moment, there is no doubt about that.

“But prices are falling, so the shops won’t be counting as much money as they are used to at this time of year.

“Everybody has read all the warnings and all the messages that are out there about watching what you spend. “Everybody is more aware of the prices on offer everywhere, whether it is Tesco, Asda or Debenhams, as shops are attracting people in by dropping prices.”

John Morton, manager at the Wellgate Centre, said shops were expecting trade to be slow in the initial stages of December.

“People will be waiting to see if the prices go down,” he said. “Customers are holding off to see if the shops will add on discounts in the last few weeks before Christmas.

“We are bracing ourselves for a slow start and then a frantic couple of weeks towards the end of the month.”

Karen Stewart, general manager of Overgate, said, “Overgate sales are holding up well, and Christmas shopping is most certainly under way.

“Many retailers are continuing to enjoy good sales in the run-up to Christmas despite the current economic climate.

“We have developed our Christmas campaign, Making Christmas go Like Clockwork, with the customer directly in mind.

“To ensure Christmas shopping is as stress-free and easy as possible, we have developed a packed calendar of themed shopping evenings and fun kids’ activities, plus extended opening times and free parking from 5.30pm in December.”

* Major retailers were slashing prices today in a pre-Christmas bid to breathe life into the ailing high street.

Marks & Spencer is cutting prices by 20% in its clothing and homewares departments in its biggest one-day promotion for four years.

Retail giants Debenhams and Bhs were also discounting stock this week.

The high street fears the economic downturn will stop people hitting the shops ahead of this year’s festive season, with Debenhams saying next month is set to be “the worst Christmas we have ever had”.

M&S began the 24-hour sale online at midnight and will keep a number of large stores open until midnight tonight to allow customers to take full advantage of the offers.

M&S spokeswoman Clare Wilkes said, “M&S customers are telling us they are feeling the pinch more than ever, and they need some support to help make Christmas extra special.”

Asked about speculation the event would dilute sales leading up to Christmas, she said, “These are really unusual times. It’s a very volatile and competitive environment, and we need to trade through it.

“We need to compete for every share of the pound that is available to be spent.”

Debenhams is in the middle of a three-day, £200 million price-cutting campaign across every trading area in all its stores and online.

A Debenhams spokesman said sale customers had queued outside the stores, which were “packed”.

Debenhams deputy chief executive Michael Sharp said the final weekend before Christmas would be key, and that many retailers would have gone on sale by then.