Mixed fortunes on high street in festive rush

Marks & Spencer reported robust sales over the festive season with its food department compensating for weaker growth in clothing and home, while Debenhams also reported a surge in trade in the final week before Christmas.

But computer games seller Game yesterday warned it would breach a banking covenant – a promise made to creditors to secure a loan – if current market conditions continue and warned that its sales over the last eight weeks were down 14.7 per cent on the same period a year ago.

Food sales in Marks & Spencer stores which have been open for more than a year increased by 3 per cent in the 13 weeks to 31 December, as they pulled in customers with promotions and 600 new product lines.

Rival Debenhams said warmer weather throughout October and November impacted upon sales until a record Christmas week, leaving trading for the 18 weeks to 7 January at the same level as a year ago.