West End spree worth £250m marks start of Christmas shopping season

Online shoppers expected to add record £8bn to seasonal consumer spend
Chritsmas shoppers walk along Oxford st in central London
Oxford Street and Regent Street were traffic-free on Saturday November 27 to encourage Christmas shoppers. Photograph: Paul Hackett/Reuters

Retailers reported a bumper start to the festive shopping season over the weekend, with about 1.5 million shoppers splashing out more than £250m in London's West End alone.

The cold weather and snowfall in parts of the country did not put off shoppers eager to snap up gadgets such as 4G phones, high-definition and 3D TVs, toys and luxury labels.

Millions more consumers will start their Christmas shopping on the internet today on the date that has been dubbed Manic Monday. Some £8bn is expected to be spent online this Christmas – adding up to nearly a quarter of total retail sales.

On Saturday, promoted as "Shop West End VIP day", 1 million shoppers descended on the West End in London as Oxford Street and Regent Street were closed to traffic and many stores ran promotions and activities.

Retailers enjoyed their strongest trading day in three years, according to the New West End Company, which represents the area's stores.

"This is the weekend Christmas starts," said spokesman Jace Tyrrell. "Luxury was doing really well, in particular accessories such as handbags. You'll see more promotions over the next four weeks."

Other holidays, such as Chanukah, the Jewish festival of lights, on Thursday, have also boosted sales.

Big names including Marks & Spencer, Debenhams, Currys, Argos and House of Fraser slashed prices by up to 50%.

Official figures recently showed retail sales were picking up momentum ahead of Christmas, and economists expect consumers to bring forward big-ticket purchases before VAT rises from 17.5% to 20% in January.

Faced with a cold snap that is set to last several weeks, shoppers stocked up on winter clothing, electric blankets and duvets, John Lewis reported. The partnership took nearly £100m at its department stores across the country last week – nearly 9% ahead of the same week last year.

Nat Wakely, director of selling operations for John Lewis, said: "The whole country saw a good result this week with the north and Scotland defying the snow and Oxford Street in the south recording its best ever November week, no doubt boosted by West End VIP day." Presents for children were also among the chain's most popular products. Fashion sales were up 9% while electronics sales rose 11% as televisions had a stellar week and laptops, digital cameras, iPods, Kindles and iPads rounded off the list of bestsellers.

Sales at John Lewis's upmarket grocery chain, Waitrose, reached £103m in the week to 27 November, up 10.6% on the same week last year. A pudding created for the grocer by celebrity chef Heston Blumenthal, containing a whole candied orange, has sold out, with sales four times higher than any of Waitrose's previous premium puddings.

Another shopping frenzy is expected today, this time on the internet. Deloitte is predicting that shoppers will spend £8bn online in December, up 15% on last year.

UK consumers lead the way in Europe when it comes to doing Christmas shopping online. In a poll of 20,000 consumers, 54% of respondents in the UK said they would buy some of their gifts online, against 33% of consumers across Europe.

Ian Geddes, UK head of retail at Deloitte, said: "Online represents less than 10% of the total retail market but will grow more quickly than total retail sales for some time. With the adoption of tablet PCs and smartphones making it easier to shop on the move, we think online sales could account for close to 20% of total retail spend by the end of the next decade."

One in 10 British shoppers will do their online Christmas shopping using a smartphone rather than a computer this year, according to Tesco Direct. Nearly half are set to shop online using their phones while watching TV, one in six expect to buy something on their phone while sat on the bus and a quarter will log on to shopping sites through their mobiles during their daily commute.