Spending spree revives stores

LEADING retailers are preparing to unwrap the secrets of their Christmas shopping in what is expected to be further evidence of a boom in High Street spending.

Key stores such as Marks & Spencer, Next, Arcadia and Matalan are likely to announce rises of up to 6% or even more after shoppers, shaking off the hangover from 11 September, embarked on the biggest High Street spending spree since the late 1980s.

The British Retail Consortium is expected to report retail sales in the five weeks to the end of December up by nearly 7%, double last year's performance. However, the figures will be closely studied by the Bank of England's monetary policy committee for signs of inflation building up, although it will almost certainly hold rates at 4% when

it meets later this week.

Womenswear chain bonmarche yesterday whetted analysts' appetites by unveiling a 4% increase in same-store sales in the seven weeks to 30 December throughout its 240 stores. The strong performance from the group, which aims at the over-45 age range, has reinforced chief executive Steve Bullas' determination to open a further 30 stores.

Nick Bubb, retail analyst at SG Securities, is expecting a revitalised Marks & Spencer, which unveils its spring collection today, to announce a 4% rise in sales during the crucial Christmas period.

The group, which finished 2001 as the best performing stock in the FTSE 100, has pleased its city fan club by its decision to shed its disparate overseas ventures to concentrate on the UK. On Sunday, it said it was still in talks over the sale of its last US business, Kings Super Markets, which could fetch up to £120m.

Forecasts of a sharp uplift in trading at Stuart Rose's Arcadia - the Top Shop and Miss Selfridge's chain - on Wednesday could trigger off a long awaited bid from Icelandic retailer Baugur. Analysts believe it will have to offer up to 330p, against Friday's closing price of 265p, valuing it at £625m.