THE High Street was abuzz with activity. Huge crowds flocked to the shops as they began slashing prices even before Christmas. Deep discounts of up to 90 per cent appeared to lure out many shoppers after a slow start to the month for retailers.

But while the crowds made the shopping precincts look healthy it is unclear whether the sales will be enough to save some retailers from a poor year and tough times ahead.

WestQuay Shopping Centre reported the two million shoppers passing through its doors were 3.3 per cent down on last December, but numbers were up 4 per cent last week. Boxing Day saw an increase of 37 per cent as 48,000 went to hunt for a bargain.

Nicky Bromley, marketing manager, said many retailers were reporting upbeat sales.

“They’re saying really positive things. So far they’re really pleased.

“Republic [a fashion chain] said they had their best day since they opened.”

She added that New Look said they were the best performing UK chain, with sales up seven per cent on last year.

“People were out spending in the sales before Christmas, buying gifts. They’re now treating themselves. There are still bargains to be had,” Miss Bromley said.

However she admitted things would turn in January.

“Every year January will go down. No one really knows what’s going to happen.”

John Lewis yesterday reported sales picked up after a sluggish early December but were still down 3.9 per cent for Christmas week at its WestQuay store. Sales for the preceding 22 weeks had been down 12 per cent on the previous year.

However, store managing director Mark Venables said last week’s clearance sales were likely to be up 20 per cent on last year.

“Sales have been significantly up every day,” he said. “There is some evidence that people are almost bulk-buying.

“There is no sign of the early spending in the sales slowing down but that said, most people are not back at work.”

Mr Venables said the sales were “very important” to move stock ahead of what he predicted would be very tough times until at least the end of April.

“The most difficult thing to predict is how long it will go on for,” he said.

Rashmi Chandre from East Street Traders’ Association said his 31 members had fared “better than expected”, although said sales were at best “on par” with last year.

“We didn’t have very high expectations in the current economic climate. And it’s going to be even worse.

“We are all bracing ourselves for very difficult times ahead. The only way is to be lean and fit. It’s going to be survival of the fittest.”

While retailers were sounding upbeat, experts predicted that the Christmas shopping frenzy was likely to be over quickly and the last-minute boost will not compensate for a bleak period for retailers.

Richard Dodd, of The British Retail Consortium, which will release its own sales figures later this month, said: “It will still prove to be the case when the figures are in that, as a whole, it has been a poor December.”

Accountants BDO Stoy Hayward said fashion sales fell by 7.8 per cent in December. Total sales, including homeware, were down 5.4 per cent.

Company doctors are predicting more retailers will go to the wall.

Smaller shops will come under pressure from their biggest VAT bill of the year at the end of January, a quarterly rent bill is due at the end of December, and in April they will be hit by a five per cent rise in business rates. The falling pound has also increased the cost of imported goods.

Studio photography business Olan Mills became the latest corporate casualty after shutting all of its 34 sites across the UK.

The group, which traded out of the Mothercare store in West Quay Retail Park, announced that it had ceased trading on Boxing Day.

It followed the closure of Woolworths stores nationwide. Furniture retailer MFI, music and games chain Zavvi and childrenswear chain Adams have all gone into administration.

Fellow strugglers Whittard of Chelsea and the Officers Club called in administrators but were immediately sold in rescue deals.

Bryan Jackson of PKF, administrators for USC, warned the economic storm was set to worsen and other companies could find themselves in the same plight within weeks.

Nick Hood, a partner at Begbies Traynor, a corporate rescue specialist, said company fortunes were the most volatile in 40 years and predicted another five or ten notable insolvencies in the retail sector and at least a year of agony before things get better.

Unions have also warned things will get a lot worse before there is an improvement.

Rising unemployment is also set to dent consumer spending.

Trade body the Chartered Institute of Personnel and Development has warned that at least 600,000 jobs could go in the UK in 2009.

Official figures show 1.86 million people out of work in October – the highest since 1997.