Big ticket retailers, especially those with high operational gearing, will be most at risk, according to Peter McLoughlin of Santander Asset Management UK.

He suggested that a recession had been fended off by low unemployment, rising incomes and a fairly strong housing market, though the latter would feel the pinch in the coming months.

“The most exposed stocks – mainly DIY, electricals and homeware – are likely to experience the biggest challenges,” he said.

Richard Dodd, head of media and campaigns for the British Retail Consortium, said that Christmas spending would provide a welcome boost for retailers.

The organisation said that this year’s festive buying was worth £12 million to retailers, a five per cent increase on last year.

He added that while internet spending was increasing, the majority of spending was still on the high street.

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