British retail sales edged higher in the run-up to Christmas, but did not grow as fast as some shopkeepers had hoped, according to a press report.

Growth as low as 3% would be a major disappointment for UK retailers Richard Lloyd-Owen, Deloitte & Touche

Preliminary figures compiled by the British Retail Consortium and accountancy firm KPMG show that sales for the first two weeks of December were 3-4% up on the same period last year, the Sunday Times reported.

Separate weekly data show that sales were only slightly ahead of last year, reinforcing fears of a slowdown in consumer spending.

The BRC figures tally with a separate report from accountancy firm Deloitte & Touche, which predicts that consumers will spend 3% more this year than last.

"Given that retail sales growth so far this year has been at 7%, growth as low as 3% would be a major disappointment for UK retailers," said Richard Lloyd-Owen, head of consumer business at Deloitte & Touche.

Crowds thinning

In yet another gloomy finding, the Footfall Index, which measures the number of visitors to UK shopping centres, showed a 4% decrease in crowds in the first two weeks of December compared with the same period last year.

British shoppers, encouraged by soaring house prices and low borrowing costs, have been on a spending spree in recent years, fuelling strong retail sales growth.

But some analysts have warned of an impending slowdown amid growing economic uncertainty.

In November, the year-on-year rate of sales growth fell to its weakest level in two years, sending ripples of alarm through the retail sector.

However, some shopkeepers are hoping that a last-minute surge in activity will help to boost their final Christmas takings ahead of forecasts.

KPMG and the BRC are due to release final estimates on 13 January.