The UK’s struggling retail sector offered glimmer of hope after high street hitters registered increase in sales during Christmas festivities.

Department store chain Debenhams and fashion chain Next posted higher-than-expected sales while homewares group Dunelm reported robust trading.

Next group did not join competitors in discounting prices before Christmas and made a good start to its sales by sticking to its past guidance on profits and keeping tight control on costs. Its sales went up 10% at one stage, despite a 7% fall in like-for-like sales at stores.

Debenham posted less-than-forecast sales fall of 3.3% across UK and Ireland during Christmas, which led to a jump of 30% in its share price. Debenham also benefited from improvements in quality of goods and price promotions as consumers gave preference to better quality items.

Homeware firm, Dunelm, was focussed on a value-for-money approach which helped it in compensating for lower sales.

Privately owned fashion chain New Look refused being dragged into pre-Christmas price war and registered 2.8% rise in sales when compared to sales in 2007.

According to David Buik of BGC Partners, Debenhams and Next performed better than expected and management of both groups proved to be good housekeepers.

But despite indications of post-Christmas rise in sales, trading at high street could slide once again, says retail analyst Freddie George at Seymour Pierce.

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