RETAILERS in the south are hoping to buck the trend of stagnant retail sales in the run-up to Christmas.

Figures out this week reveal that sales growth on the high street has fallen to a two-year low just as retailers prepare for the crucial Christmas season.

The British Retail Consortium said sales volumes last month were up just two per cent on a year ago on a like-for-like basis, the slowest growth since November 2000.

However, WestQuay in Southampton and Gunwharf Quays in Portsmouth are both gearing up for record visitor numbers.

The management team at WestQuay says its retailers are on track for a bumper Christmas with sales continuing to grow steadily with predictions of a nine per cent increase at the end of this year compared with 2001.

Louise Hamer-Brown of WestQuay management said: "Sales are strong and there is a real trend towards mall-based shopping in the UK now, so we are delighted to be experiencing continued growth."

WestQuay expects its visitors and sales to grow steadily over the next three weeks with nearly two million people expected to visit the centre during December.

In Portsmouth, Gunwharf Quays promises record sales with a veritable winter wonderland created for visitors, featuring radio roadshows, ice skating, a Santa's Grotto, the 'Santa Express' train and bespoke designer Christmas decorations.

Last year saw 135,075 people visit the award-winning retail, leisure and business destination in the week leading up to Christmas. This year the Gunwharf Quays team is building on this success, with a programme of activities that will set a precedent in retail outlet Christmas design.

Elisa Wright, marketing executive at Gunwharf Quays, said: "Christmas is our busiest period and it's great to be able to give something back to our visitors in the form of our displays and events."

However, national figures paint a gloomier picture with British Retail figures set to spark fresh concerns that the economic uncertainty could hit stores over the festive period as consumers tighten their belts.

Director-general Bill Moyes said the sector was suffering from comparisons with the boom on the high street in the run-up to last Christmas.

But he added there may be a growing case for yet another cut in interest rates given the slowdown.

He said: "Christmas is likely to be satisfactory, but perhaps not spectacular."