EXCLUSIVEWarning issued to shoppers over stores that advertise 'closing down sales' and stay open

Shoppers are being warned about stores which advertise closing down sales but never close in a bid to manipulate customers into parting with their cash.


Shoppers are being warned about stores which advertise closing down sales but never close in a bid to manipulate customers into parting with their cash.

Consumers are being told to watch out for clever marketing strategies which create a sense of urgency and make them feel like they might miss out on a once-in-a-lifetime deal.

Despite a 2008 Consumer Protection Act prohibiting owners from misleading action, stores still continue with these ploys.

MailOnline visited a number of stores which have claimed they are closing down for up to three years. 

Behind the bargains, the outlets in question decorate themselves with signs declaring everything must go and last few days of sale - but have no intention of shutting. 

Retail experts have issued guidance to shoppers on how to spot whether a closing down sale is too good to be true.

Nguyen Huy, a consumer trend analyst and eCommerce expert, said: Some stores use the "closing down" narrative purely as a tactic to drive traffic.

It’s a psychological nudge - people don’t want to miss out on what feels like a once-in-a-lifetime deal.

A worker advertising bargains outside the Pound Shop on Hounslow high street

A worker advertising bargains outside the Pound Shop on Hounslow high street

Shoppers are told everything must go at the Pound Shop on Hounslow high street

Shoppers are told everything must go at the Pound Shop on Hounslow high street

Closing down stores: What does the law say? 

The 2008 Consumer Protection Act prohibits misleading action as well as claiming that the trader is about to cease trading or move premises when he is not.

Anyone caught flouting the law could face up to two years in prison and an unlimited fine.

To avoid committing offences under the Consumer Protection Regulations, the trader must ensure that they are truly about to cease trading.

When it comes to sales, the comparison should be with the trader’s own previous price rather than a recommended retail price.

And the previous price should have been offered for at least 28 consecutive days in the last six months.

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One of the stores visited by MailOnline was The Pound Shop on Hounslow high street.

The reporter found a man standing outside the store shouting: Sale, sale, sale. Everything must go. Come on, come on. Two pillows, five pounds.

The words Bye, bye Hounslow were also plastered above the shop entrance in capital letters.

But, according to residents, the shop has been closing down for the last three years.

A local said: The sale has been going on for about three years. They used to have a loudspeaker outside the store but these days there is a man who stands there announcing it. 

One review left by a customer said the store was selling products of below average quality for the price.

They added: And its definitely not closing down I guess.

Another said: "Closing down sale" going for 13 months now.

Josh Neuman, a eCommerce marketing professional and founder of Chummy Tees, warned that pricing is an indicator for whether a sale is too good to be true.

He explained: These stores items arent always cheap. Many inflate the original price to make the discount appear larger. 

I found that the sale price was often higher than online prices for some products in these stores.

Using bait to make customers think theyre getting an exclusive offer is a common tactic.

This was echoed by Fiona Peake, a consumer expert at Ocean Finance. She said: Just because a price tag says ‘sale’ doesn’t mean it’s a bargain.

She advised that customers compare the sale price to what similar items cost elsewhere or check online to see if the discount is actually competitive.

Some retailers inflate the original price to make discounts look more generous than they really are, she added.

Staff at this shop on the High Road in Ilford, west London, (pictured) said they were not closing down when approached

Staff at this shop on the High Road in Ilford, west London, (pictured) said they were not closing down when approached

The shop in the High Road in Ilford claiming to be closing down
The store in Ilford advertising a closing down sale

The store frontage claims the sale is in its last few days but inside, workers were unable to answer questions about when they were closing down. Pictured: Shop in Ilford

Another store visited by MailOnline, in Ilford, east London, advertised a closing down sale accompanied with blaring music and signage telling shoppers everything must go.

But after being asked when the shop would be closing, a staff member said: We are not closing down.

And when pressed on how long the sale had been going on for, they added only a couple of weeks.

But nearby businesses had a different story to tell. A worker at the Made to Inspire clothes outlet said the store had been closing down for about six months.

Retail experts have warned staffs inability to answer questions about closing down sales is another red flag to be aware of.

Ms Huy added: Shoppers should look out for a lack of transparency around these types of sales.

Staff may seem unsure about what’s happening or avoid direct questions about why the store is closing. That’s another hint it might just be a sales ploy.

Mr Neuman added that layout can also be a tell-tale sign that a sale is not legitimate. He said: These stores emphasize chaos - overstuffed shelves and bins, random signage, and little merchandising.

Making it seem like inventory is flying off the shelves is actually about creating an illusion of scarcity.

The Factory Outlet store on Ilford High Road

The Factory Outlet store on Ilford High Road

This store in Reading had bright yellow labels stuck on items, as a

This store in Reading had right yellow labels stuck on items, as a loudspeaker announced everything is on sale

The U & M Home Perfection store in Ilford had reportedly been closing down for years

The U & M Home Perfection store in Ilford had reportedly been closing down for years

The Sale Shop in Ilford, west London

The Sale Shop in Ilford, west London

Diva on Hounslow High Street is also advertising a closing down sale

Diva on Hounslow High Street is also advertising a closing down sale

Pricing Practices Guidance state where a trader is making a price comparison, the comparison should be with the trader’s own previous price and the previous price should have been offered for at least 28 consecutive days in the last six months. 

When approached, the Met Police said questions about closing down stores should be directed towards the local council or Trading Standards.

Trading Standards said investigations would be undertaken by the relevant council.

A Redbridge Council spokesman said in response to the Ilford stores: In this particular case, proving this type of offence is invariably challenging; it requires demonstrating that the retailer made the statement knowing it had no real intention of ceasing trading.

Our Trading Standards Team will always prioritise areas of work based on intelligence, which includes factors such as the severity of the offence, the potential impact on consumers, and the likelihood of successful prosecution.

They added that the council works very closely with local businesses and the Ilford Business Improvement District to promote and support a healthy retail environment in the town centre.

The Hounslow and Reading councils are yet to respond to a request for comment.

A member of staff at the Hounslow Pound Shop store insisted the manager would not be available to speak and on further probing claimed the outlet would be shutting at the end of December.

This comes as another store began advertising a closing down sale on Hounslow High Street in November with a member of staff reporting the management is awaiting the landlords decision on whether its lease will be extended.

Closing down sales: How to spot when a bargain is too good to be true

Experts have compiled a list of tips for British shoppers to help them spot when a closing down sale is genuine. 

Ask yourself - how long has the shop been closing down for? says Josh Neuman, an eCommerce marketing professional.

If a store has been closing down for months or years without changing inventory or location, beware. They may be using psychological triggers to get customers to buy before they “miss out.”

Stores have repeated the same inventory with slightly different “sale” signs to make it look new.

Is the shops inventory going down as the sale continues? A true closing down sale will often have significant discounts that keep increasing as inventory runs low—think 50%, 70%, even 90% off near the end.

You’ll notice shelves starting to look empty, with no restocking happening. These sales also typically have a clear end date. If a store is vague about when the sale will end or keeps extending it, that’s a red flag, says Nguyen Hay, the founder of Kory Threads.

What about pricing? Just because a price tag says ‘sale’ doesn’t mean it’s a bargain. Compare the sale price to what similar items cost elsewhere or check online to see if the discount is actually competitive.

Some retailers inflate the original price to make discounts look more generous than they really are, writes Fiona Peake, a consumer expert at Ocean Finance.

Источник: Daily Online

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