MARKS & Spencer is taking on Newton Abbot's discount stores by rebranding its Courtenay Street branch as an outlet store.

It is one of 34 stores across the country where goods are on permanent sale.

Customers can expect 30 per cent off most lines, including popular women's clothing label Per Una. Marks & Spencer introduced outlet stores about two years ago in Aldershot, Woolwich and Hounslow.

'They are mainly in retail parks but we are increasingly looking at putting them in high street locations,' said a Marks & Spencer spokesman.

'Certain lines are exclusive to outlets and certain lines are full price, last season's stock.'

As the credit crunch bites, shoppers are more than ever on the look-out for a good bargain. Low cost clothing store Primark has announced an increased annual operating profit of 17 per cent and a 21 per cent increase in sales while Marks & Spencer has posted a 43 per cent drop in first-half year profits.

'Newton Abbot was chosen because across our estate we constantly assess where customers will benefit from good value merchandise. They've been really popular,' the spokesman said.