CHRISTMAS STARS AND CASUALTIES
The City's focus will stay fixed on the high street in the coming week, as more of its big guns reveal whether Christmas tills were ringing or stayed eerily silent.

Dispatches from the front so far show the retail sector as a whole enjoyed solid seasonal sales, even if purchases were often made at the eleventh hour.

But they also suggest clothing stores lost out (with the exception of Next) as shoppers opted for TVs, DVDs and books.

Shoppers' priority purchases last month should be most evident in Marks &Spencer's trading update on Wednesday.

Although its Christmas advertising promised 'Magic & Sparkle', M&S shares have recently looked dusty, with only modest seasonal sales growth expected.

The group may well report heavy traffic in its food and drink halls in the weeks to December 25 but fewer visitors to its clothing departments.

Supermarket giant Tesco had a good Christmas it can be confidently assumed and will answer the question 'how good' on Wednesday.

The group is now stepping on the toes of other high street names as it offers items such as 50 cashmere sweaters in a growing clothing range.

Its figures may impress all the more if rival Sainsbury, reporting on Monday, again saw sluggish growth last month.

Riches to rags?

Potential Christmas casualties are not too difficult to identify, if reports of weak clothing sales last month prove correct.

New Look, whose trading update is out Tuesday and Austin Reedand Matalan which follow on Wednesday, have already had a bumpy ride in recent months.

Body Shop, which follows on Thursday, may have been helped by offering deep discounts weeks before January.

Electrical retail giant Dixons will comment on seasonal trade when first-half figures for the 28 weeks to mid November are issued on Wednesday.

It has already said total sales for the period were up 20%, but after taking out the contribution of newly-opened stores the rise was only 1%.

At the time, it ducked any predictions for Christmas after guessing wrong a year earlier. The issue of extended warranty sales is also a sensitive one.

Signs of revival

Economic data for the coming week could show unemployment at a new 29-year low when data for December is issued on Wednesday.

As ever, the Bank of England will be more interested in figures for average earnings and any evidence that skills shortages have begun to impact.

Pay deals only edged up modestly last year, standing at 3.6% in the three months to October.

More good news is likely on Monday when the Confederation of British Industry offers its latest survey of the financial services sector.

The CBI's previous report in October suggested the good times were back, with companies showing the best levels of confidence since mid-1999.

Shares have since revived further, IT investment is picking up and merger and acquisition deals are back in favour.

MONDAY January 12

Interims: Honeycombe Leisure, Pace MicroTechnology, Photo-Me International.

Trading update: Kesa Electricals, Ted Baker, J Sainsbury.

TUESDAY January 13

Finals: Domino Printing Sciences, Heiton, Montpellier Group, Parkdean Holidays.

Interims: Inter Link Foods, Jacques Vert.

Trading update: Burberry (Q3), New Look.

Index of production (Nov).

WEDNESDAY January 14

Finals: London Scottish Bank.

Interims: Dixons, DTZ Holdings, Northgate.

Trading update: Austin Reed, GUS, JD Sports, Marks & Spencer, Matalan, Tesco.

THURSDAY January 15

Trading update: Body Shop International, Carphone Warehouse, HMV, Merchant Retail, Ottakar's, Reuters, Woolworths.

FRIDAY January 16

Trading update: Boots.

Get your hard hat out if you own retail shares for next week
it may come in useful!!