HEFTY Christmas sales falls at the owners of Homebase and Currys have confirmed the impact of the economic downturn on Britain’s battered retailers.

But resilient sales at some high street chains suggested the festive season was not a complete washout.

Currys and PC World parent DSG International delivered a grim update as expected, with quarterly sales down ten per cent, while Home Retail Group also saw sharp declines of 7.5 per cent and 10.2 per cent for its Homebase and Argos brands.

The firms have been struggling as consumers cut their spending on so-called “big ticket” electrical gadgets and housing-related purchases amid the economic and housing market slump.

DSG and Home Retail shares slumped on the trading news, down five per cent and seven per cent respectively.

The collapse in new car sales market helped Halfords after it revealed a rise in sales of car maintenance products but a fall in demand for satellite navigation systems saw Christmas sales slump 7.8 per cent.

However, there was more positive sales news at a raft of retailers including discount clothing chain Primark, mother and baby group Mothercare.

Primark parent Associated British Foods said sales at the budget fashion business soared 18 per cent in the 16 weeks to January 3 in a further sign of a switch to cheaper by cost conscious shoppers.

And today’s updates also signalled that the mounting numbers of retail casualties such as Woolworths and kitchen and furniture group MFI is giving their high street survivors a welcome lift.

Home Retail Group largely thanked the collapse of MFI for keeping kitchens sales in positive territory – one of the only areas that did not plunge into the red.

And some commentators also attributed Mothercare’s 1.1 per cent rise in third-quarter UK sales in part to the demise of Woolies.

HMV is another to benefit as a “last man standing” after rival music and entertainment retailer Zavvi fell into administration on Christmas Eve.

HMV has announced it is snapping up 14 former Zavvi stores – paying £2m to cover the purchase price and complete refit and rebranding costs.