BARGAIN-HUNTING shoppers helped Liverpool discount retailer TJ Hughes achieve a recession-busting rise in annual sales and profits.

The London Road-based chain announced a 9% rise in turnover of £261.3m for the year to January 31.

The company, which is backed by European private equity firm Silverfleet Capital, also reported pre-tax profits of £2.36m, up from £1.55m in the previous year.

The performance across its 50-strong store network has out-stripped the rest of the retail sector.

TJ’s directors attributed the strong performance by one of the UK’s original discount chains to the emergence of “smart shoppers” who are now seeking branded products at discounted prices as the recession rumbles on.

Chief executiveŠSue Tennant said: ‘‘We have always had a strong, consistent following from our loyal customers, but are now also attracting a different type of shopper who is turning to TJ Hughes because they find high value items at bargain prices.

“These ‘smart shoppers’ are finding that they can come into our store, or shop online, and buy top brands at reduced prices.

“Once they realise how much they are saving, they don’t want to go back to paying the premium price. This new group of customers is going to stay with us for the long term.”

She revealed that, in the half- year ended August 1, 2009, the group has continued to perform extremely well, with positive like-for-like sales and internet sales growth of more than 80%.

Mrs Tennant aims to build on the business’s surge in popularity. She said: “Our business has huge untapped potential and we are committed to investing in the next stage of our growth, with more stores and a bigger internet offering.”

TJ Hughes was founded in Liverpool in 1912 and boasts it is the only high street department store to offer discounts on all famous brands in both fashion and home.

The business employs more than 4,000 people and opened its 50th outlet last month at a former Woolworths store in Derby.

More stores are planned to open in the near future, including another former Woolworths conversion at Walsall, in the West Midlands.

TJ Hughes was previously owned by Wigan-based JJB Sports who in 2003 sold it again to Silverfleet, the new identity for Prudential’s former venture capital arm.