The boost of the Christmas rush has not had the same effect on the January sales, according to figures from the Confederation of British Industry who this week revealed sales fell back sharply in January. The survey showed that while 28% of retailers said sales volumes were up in the first two weeks of January, 38% said they were down. That left the sales balance at -11 in January, from 0 in December, a steeper decline than expected.

Asda director John Longworth, who heads the Distributive Trades Survey panel, reported told the Guardian: "Looking ahead, expectations for growth are the strongest since May but sales remain heavily dependent on price discounts and promotions." The consumer spending downturn is having a knock-on effect on the retail property market. A study from the Royal Institution of Chartered Surveyors showed new enquiries from retailers to lease space in the final quarter of 2005 fell at the fastest rate in four years, while the supply of retail space available rose at its fastest rate in three years.