Heavy discounting over Christmas helped to reverse the fortunes of many retailers who had faced a tough trading climate in preceding months. Figures released today by the British Retail Consortium show retail sales were 2.2% higher on a like-for-like basis from December 2010, when sales had fallen 0.3%, hit by snow.

The figures are released on the same day that Marks and Spencer and Debenhams reported modest rises over Christmas. Marks and Spencer upped their sales by 0.5% on the previous year, while Debenhams increased sales by 6.5%.

Ellen Flood, retail expert from Shopow, said, “Following a rough few months on the high street, stores ended the year in a much better position than they expected but they shouldn’t hold celebrations just yet. Trading statements currently being released by the high street giants are mixed, while some stores who managed to limp into the New Year have already faced administration.

“What we will see this year is the evolution of the high street with leading retailers changing their approach, and in many cases their product lines, to reflect the tastes of the modern shopper. To avoid the nation’s high street becoming ghost towns, retailers of all sizes will need to carry out this type of review to ensure they stay relevant.”

Elsewhere in the BRC sales figures, non-store sales (which includes online) saw a sharp rise, recovering from a disappointing November. Sales were up 18.5% compared to the same time last year.

“The web is emerging as a key component of the retail landscape as online retail sales continue to grow. Online stores offer shoppers an incredible amount of choice, convenience and savings and innovations such as social shopping are making the online shopping experience much more fun. If shoppers can share their experiences, deals and reviews, they will associate internet shopping with enjoyment and interactivity as well as ease of use.”