Walk around almost any German city at the moment and you will immediately notice that something's different. Where are the reductions? Why aren't retailers on Sale ahead of Christmas, like in dear old GB?

The answer is simple: they're not allowed to be. The periods during which German retailers can go on Sale are governed by legislation, so there's hardly a whiff of red (pen) other than that worn by elves, St Nick or any of his red-coated helpers that are evident in many windows.

Now there might actually be a pressing need for some German retailers to clear a little excess inventory, but as they can't they're making the most of the hand they've been dealt. It's a case of better margins now and the likelihood of a blockbusting January Sale a month or so down the line.

It also means that the “will they, won't they” mentality that has bedevilled retailers and shoppers alike in the UK when it comes to pre-December 25 discounts, really isn't an issue. Retailers can, of course, set their own prices. They just can't shout Sale, with 20, 30 or even 50 per cent off, to stimulate trade.

The net result is that shoppers keep on shopping while retailers benefit from goods sold at full margin rather than being forced to take a view. It also means that the mess that characterises our high streets at the moment is almost nowhere to be seen in Germany.

What is on view is nothing other than the UK's would-be go-getting free market approach set against the more regulated environment within which German retailers operate.

And the outcome, from a purely aesthetic perspective, is that high streets and stores in Germany are generally rather better looking than their UK counterparts and shoppers seem resigned to paying the price.

So as rumours persist about a possible switch to the Euro and UK retailers continue to offer ever more improbable discounts, you have to ask which system looks more robust. Certainly in the good times, it has been the UK that has led the way. But as things stand, a little regulation might not go amiss. It would mean improved shops and little fear of a lemming-like stampede towards minimal margins.

All of which is to ignore the internet, but then that was always the bogeyman anyway and it's not going to disappear any time soon.

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