Shopper numbers are finally beginning to pick up

Sales rose at their sharpest rate in two months in December, according to the CBI business group.

The British Retail Consortium also said business had been going "reasonably well" and large malls have been talking about record trading conditions.

However, analysts Footfall say the number of shoppers visiting the High Street is down 9% on last year.

But online retailers appear to be heading for a festive bonanza. According to forecasts from IMRG, which represents online stores, consumers will spend a record breaking �7bn on internet purchases this Christmas.

Late dash

The latest survey from the CBI showed an unexpected increase in sales volumes.

According to the group's distributive trades survey December's sales balance jumped to +25 in December from -9 in November.

If you compare the line-up (of music releases) this Christmas with last, it isn't as exciting Simon Fox, HMV

"After a slow start in the run-up to Christmas, sales are really beginning to build," said John Longworth, chairman of the CBI survey panel.

"But consumers have again left it later to hit the shops before Christmas, perhaps due to the unseasonably warm weather and the timing of Christmas day itself."

'Big hit'

With Christmas Day falling on a Monday, consumers have the whole weekend to pick up last minute gifts.

Market analysts TNS Worldpanel also predict that there will be a flurry of activity on the High Street in coming days - with 40% of the pre-Christmas shopping set to take place on Thursday on Friday.

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TNS forecast that UK consumers will spend a record �3.8bn this week, as the average household spends �153 on its Christmas preparations.

"Retailers must be ready for the big hit we are expecting them to take on Thursday and Friday to ensure there is still stock for those shoppers waiting until the end of the working week and heading out on Saturday to get their goods in," the group said.

Hard times

But despite the cheering news, shops have been suffering in the run-up to Christmas. Experts have blamed a lack of big releases in the music, film and book world, and warned that unseasonably warm weather is likely to hit clothing sales.

Both HMV and Woolworths have said that trading has been tough.

"If you compare the line-up (of music releases) this Christmas with last, it isn't as exciting," HMV chief Simon Fox said.

Stores have been trying to attract consumers by slashing prices

In the run-up to last weekend, shopper numbers were also considerably lower than last year.

Despite reports of an improvement on Saturday and Sunday, the number of people hitting the shops remained up to 13% lower than in 2005, according to analysts Footfall.

In an effort to attract consumers, shops have been launching their January sales early - with some shops slashing prices by as much as 70%.

Debenhams, Marks & Spencer and Currys Digital are among those to have begun discounting drives.

Weekend winners

On a brighter note, the Association of Convenience stores expects to benefit from the timing of the holiday.

With bigger stores limited to just six hours trading on Sunday, corner shops expect to cash in on last minute purchases of forgotten smaller items and top-up goods such as milk.

"One of the biggest sellers will be batteries because Santa doesn't always remember to include them with toys," said the association's chief executive James Lowman.