Both stores are staying open until 10pm tonight.

Marks & Spencer is cutting prices by 20% in its clothing and homeware departments in a repeat of its biggest one-day sale for four years.

The company said customers will also receive 20% off Christmas cakes and puddings.

Shoppers will also gain from the 2.5% VAT cut announced in last week's Pre-Budget Report.

Staff were reporting increased footfall at the Murraygate branch today.

M&S chairman, Stuart Rose, said, “Our last One Day Christmas Spectacular went down really well with customers.

“We know that people are feeling the pinch and we want to give them a helping hand in the run up to Christmas.”

Debenhams is offering up to 20% off across every trading area.

The company said almost everything will be covered in the price cuts, including clothing, cosmetics, homewares, accessories and Christmas gifts, with online shoppers also able to take advantage of the offers.

The company’s Overgate store was bustling with activity today as bargain hunters filled up with goodies.

Debenhams deputy chief executive Michael Sharp said the promotion was back by popular demand.

He said, “We're not forcing people to shop on just one day, unlike some stores.

“We've spread these credit crunching offers over three, so customers can shop when it’s convenient for them, not the other way round."

Other retailers are also slashing prices in a series of early bird sales.

It appears no-one wants to be left with a lot of stock they can't sell and, with gloomy economic forecasts, retailers are discounting early, which is good news for Dundee shoppers feeling the effects of the credit crunch.