HIGH street retailers in Hampshire are feeling the squeeze due to a sluggish start to Christmas spending.

Analysts say the successive rise in interest rates, along with hikes in gas and petrol prices, has dampened consumer spending in the run-up to the most critical month of trading in the calendar.

Companies like Body Shop, WH Smith, Dorothy Perkins and Tesco have already knocked between ten per cent and 20 per cent off the price of various lines in a bid to woo shoppers.

Many of the top brand names are involved in a price war that hurts their profit margins but spells good news for customers.

Survey data released by on-line polling organisation YouGov on behalf of business advisory company KPMG reveals that more than half of shoppers in the south have so far spent less than £100 on Christmas-related purchases.

In addition, 39 per cent of the region's shoppers intend to complete their present buying no earlier than the week before Christmas, with 13 per cent expecting to complete as late as Christmas Eve itself.

Tony Cottam, senior partner at KPMG's office in Southampton, said: "Every year retailers hope that they may be able to convince shoppers to start their Christmas shopping early but it looks like they've not managed it this year - just when they needed it most.

"It does therefore raise questions about the wisdom of starting Christmas promotions so early.

"Our survey shows that five per cent of people have already done all of their Christmas shopping but as this number remains constant across all regions and age ranges, you have to assume that these people always get their shopping done early, irrespective of the latest Christmas sales push. Mr Cottam also pointed out that the retail sector needs a good Christmas because of poor sales figures in general.

He added: "They may well still get it but it looks like they will have to endure the usual nervy few weeks, waiting for that big final spending spree which inevitably comes as late as possible."

Other key findings in the survey include:

27 per cent of shoppers in the south are set to spend more than £400 on Christmas, compared with the national average of 31 per cent;

Across the UK as a whole, 44 per cent of men have done no Christmas shopping whatsoever, compared to 29 per cent of women;

Fifty per cent of 18-29 year olds have so far done no Christmas shopping whatsoever while 52 per cent of them expect to spend no more than £200 in total.