Yahoo Deals woos bargain hunters

Yahoo Deals will feature discounted prices on a number of products

Yahoo is hoping to lure budget-conscious shoppers with a new bargain retail site called Yahoo Deals.

The service will feature discounted prices on a number of products, ranging from electronics and computing gear to clothing, software and games.

Yahoo hopes that the site will attract a growing crowd of bargain hunters in the midst of the current economic crisis and with the holiday season fast approaching.

"When we saw the economy slowing over the last few months, we decided to pull together a site designed to help you save money," said Yahoo shopping general manager Greg Hintz.

Among the companies already signed up to offer products are Apple, Nike and Toys R Us. A number of clothing manufacturers, such as Land's End and Gap, have also signed on.

Fellow online retail sites Woot and Amazon are also offering discounted merchandise for the service.

Online holiday shopping has seen steady growth in recent years, but analysts do not share Yahoo's optimistic outlook.

A recent survey reported that online spending in the UK is expected to drop by some 15 per cent compared to last year, fuelled in part by the worsening economy and growing volatility.