Chain stores and landlords are offering freshers massive savings in a new kind of organised shopping event

On a cold and wet Monday night in Bristol, office workers trudge home as an alternative crowd of young people in skinny jeans and hooded tops weaves its way towards the source of pounding dance music coming from the city centre.

It’s only 6pm, but a DJ battle is in full swing and free vodka shots are doing the rounds, the hallmarks of a student night. But the venue is not their favourite local haunt, Motion, it’s the Cabot Circus shopping centre. This so-called “student lock-in” aims to fill the shop floor rather than the dance floor.

The timing of the event is no accident. It’s early in the new term and freshers, courtesy of either the Student Loans Company or the bank of mum and dad, are still flush with cash and eager to fit in with fashion-conscious peers.

Fashion retailers Topshop, Republic and New Look are among the brands offering a “20% double discount” while Superdry is heaving as newcomers to the Bristol student scene kit themselves out with hoodies, checked shirts and jogging bottoms to look the part back at halls. “I love Superdry, but it’s really expensive, so I usually go to the outlet store near where I live,” says trainee teacher Jasmine Redman, clutching one of its bright orange carrier bags. “You never get a discount, so 20% off is a massive saving.”

Despite being under greater financial pressure than ever before, the student masses still have substantial spending power. With 2.5 million people in higher education, their annual spending power is put at as much as £15bn by marketing agency Campus Group. “Students are still spending on products they want,” says Sharon Leeson, head of commercial development for student discount card NUS extra. “But because of increasing financial pressures, the choices students make are changing. They are looking for money-saving offers, an experience and ultimately, value for money.”

A recent report by NUS Services, an arm of the National Union of Students, found, perhaps predictably, that many spend a significant proportion of their income on alcoholic drinks, clothing and eating out, with some 29% holding down a part-time job during term time to supplement their income.

The “student lock-in” was one of nine hosted by property firm Land Securities this autumn. Helen Morgan, its marketing manager for the south-west, uses them to attract new shoppers to its centres and build loyalty: “Our experience is students do seem to have the cash to spend at these events. In [St David's in] Cardiff we had 22,000 students and they spent £500,000 in two-and-a-half hours. Fees are not affecting disposable income.”

The marketing events not only tap into Britons’ growing love affair with shopping centres – which, with the addition of cinemas and upmarket restaurants, are increasingly viewed as a day out – but are a shot in the arm for retailers hit by a decline in footfall as higher food and fuel bills force people to cut back on trips to the shops. Land Securities has experimented with other formats, hosting a “Ladies’ Night” at the St David’s centre with the promise of “makeovers, pampering and a glamorous party atmosphere” that attracted 7,000 shoppers.

Back in Bristol, while students favouring the preppy look have made a beeline for Superdry, the indie music crowd has marched on American Apparel and Urban Outfitters. But based on queues alone, footwear retailer Schuh has won the battle for hearts and minds, with more than 50 customers waiting patiently in line. “Vans” is why architecture student Katie New is there. She works part-time in the nearby branch of Next and says: “The discount makes [tonight] worthwhile.”

Annie Achieng, womenswear manager at the Urban Outfitters store, says loan payments at the start of each term have an effect on spending patterns: “In the days before student loans get paid, footfall goes up as people come in to look at what they are going to buy.” Shoppers are buying an average of three items and the retailer is enjoying a strong run on skater skirts, shiny leggings and denim shorts as the “skater girl” look holds sway on campus.

The student lock-ins are run in partnership with events firm Total Students and Tudor Barber, one of its sales managers, says the events are considered a welcome alternative to booze-fuelled nights out: “If they don’t want to spend anything they can still come to a lock-in to chill out and catch up with friends.”

There are clear signs of savvy shopping, with Schuh store manager Sam Brown reporting that students are using the extra discount to buy two or three pairs of new shoes rather than one. “Converse, Vans and Uggs are generally up there with the student bestsellers,” she adds.

As a barometer of brands that resonate with young shoppers, the events also throw up anomalies. Jeweller Swarovski is a surprise hit with Exeter’s student body. It turns out that it is a big hit with international students, as its necklaces and bracelets cost more overseas. Cath Kidston is another surprise winner, with students scrabbling to get their hands on its chintzy floral book-bags and homewares. The events also highlight pockets of wealth. “In Exeter there is definitely more money – 5,000 students turned out and the stores took over £130,000,” says Morgan.

Early figures from the Bristol event suggested a turnout of 17,500 and £375,000 of spending. Schuh reported sales were up 180% on the previous year’s event and described the increase as “stunning”. Superdry owner SuperGroup was also enthusiastic, saying the event had “surpassed expectations”.

But with the average student debt put at around £26,000 these days, are students being encouraged to spend money they don’t have? The answer from Redman is emphatically no: “I think students are thinking it’s a discount and want to shop anyway.”