HIGH street stores last night scented success in their battle with the

top fragrance houses over the right to sell expensive perfumes at

knockdown prices.

Perfume makers have repeatedly refused to supply stores such as the

Superdrug chain with their products, fearing their upmarket image would

be tainted.

A Monopolies and Mergers Commission probe, announced yesterday, could

lead to prices for perfumes such as Chanel No 5 being cut by up to 30%

in stores across Britain.

Superdrug, Littlewoods, Poundstretcher, and other stores which have

been forced to buy the perfumes on the legal but unauthorised ''grey

market'', are already offering discounts.

Twenty of Superdrug's 670 shops sell Chanel No 5 eau de toilette at

#23.50 against the normal retail price of #28.

Givenchy aftershave sells for #9.50 at Superdrug, cheaper even than at

airport duty free shops, where it costs #11.45. The normal retail price

is #14.50.

The MMC inquiry comes after strong protests from Superdrug and other

stores determined to smash what they see as a ''perfume makers'

cartel''.

Labour raised the issue in the Commons, urging the President of the

Board of Trade, Mr Michael Heseltine, to summon the perfume houses and

''bang heads together''.

Superdrug said sales of exclusive scents were booming in the run-up to

Christmas, and yesterday's decision was a ''victory for consumers who

are being asked to pay unreasonably high prices for products to maintain

an image of luxury and exclusivity''.

Harry Thomas, public relations director with Littlewoods, which offers

discounted scents in all its 120 stores, said: ''Customers like ours who

may not be able to afford to use the big department stores are entitled

to have access to these best-selling perfumes at affordable prices.''

Last night, it appeared the move to cost-cutting was spreading.

A survey in next month's edition of the Consumers' Association

magazine Which? will show a wide range of other high street retailers

are already offering discounts, but by keeping quiet they have managed

to continue being supplied directly by the manufacturers.

BAA, which through airport sales accounts for 13% of the British fine

fragrance market, said it was studying the latest developments.

''Only a very few stores are offering discounted fragrances, but if

the practice becomes more widespread we will have to look at our

prices,'' said an official.

The nine-month MMC probe will investigate the refusal of leading

perfume companies to supply Superdrug and other stores, and will also

look at the refusal of glossy magazines such as Vogue -- worried about

their relationship with the perfume makers -- to run a Superdrug

advertising campaign offering cut-price scents.

Labour consumer spokesman Nigel Griffiths said: ''The President of the

Board of Trade must call the perfume companies in and bang heads

together.

''Consumers are already paying 30% more than they have to, and they

have already been waiting eight months while the Office of Fair Trading

considered this, and now face an unacceptable delay of up to nine

months.

In Parliament, Mr Griffiths asked Commons Leader Tony Newton, during

exchanges on next week's parliamentary business, for an early debate

''on perfume companies holding consumers to ransom, forcing up prices by

one third, blackmailing magazines and newspapers into refusing

advertisements for cheaper prices''.

Mr Newton promised to refer Mr Griffiths's remarks about banging heads

together to Mr Heseltine.