RETAILERS are going to experience a roller-coaster ride over the next month, according to Beales chief executive Tony Brown, who has just slashed prices by 25 per cent.

“This Christmas will be a white knuckle ride,” he predicted, as his Bournemouth store introduced a three-day promotion, which will run until Saturday.

His move comes after last week’s sales at Marks & Spencer and Debenhams.

Upbeat Mr Brown said that while the group has traditionally shied away from such sales, his decision has already paid off.

“The store is buzzing. Trade is up 70 per cent on last year and in some stores it’s 100 per cent,” he said.

“We all respond to a good deal.”

Former BHS retail director Mr Brown, who still receives calls from his ex-boss Sir Philip Green, explained that now, more than ever, a business must have a good relationship with its bank and that cashflow proved to be the stumbling block for MFI and Woolworths.

“A lot depends on funding and a business’s relationship with its bankers [who] are more risk averse. Businesses have to work on their relationship with their bank,” he said.

“Beales banks with HSBC and has a very commercial relationship with manager Peter Houghton.”

He added that Beales is in a strong position because many of the shares are family-owned, experiencing little movement – they hover around the 35 pence mark.

Mr Brown explained that customers like “great value for money and great products”.

The Beales promotion ends as VAT drops to 15 per cent on Monday, which has caused many retailers a headache.

But Mr Brown has chosen not to re-price all the 45,000 items available in each of the 11 Beales stores, instead choosing to “do it through the till”.

Fighting the economic situation, Beales is constantly sourcing new products introducing a new concept into its Worthing and Horsham stores, which owing to its popularity, Mr Brown intends to introduce in Bournemouth next June.

“It’s a new housewares brand called Salt & Pepper, similar to Villeroy & Boch but more affordable. It’s performing well,” he said.

And he’s not stopping there. “We’re starting the Beales wine club next week,” he revealed.

It’s similar to clubs run by Virgin and Laithwaites, but with a difference.

“We work in conjunction with New Forest Wines of Ringwood,” he said.

“I like to support local businesses – I could have gone to big merchants like Majestic.”

Mr Brown expects to sell between 100 and 150 cases a month but is still wary of the future.

He added that this Christmas “we will have to trade carefully and respond to customers”.