The worst Christmas in 25 years could make the high street in to graveyard after the holidays.

Retail sales have fallen for the ninth month in a row and half of retailers expect January to be even worse.

Confederation of British Industry research shows 67% of retailers reported a decline in year-on-year trade during the first two weeks of December, compared to 13% who experienced an increase

In a double whammy to knock retailers, the Halifax recently released figures showing 39% of shoppers are cutting back on Christmas spending.

Andy Clarke of the CBI said: "The next week will be nail-bitingly tense for retailers as they pin their hopes on a last-minute Christmas dash."

Retail analyst Nick Bubb, at stockbrokers Pali International, predicted the poor state of high street trading would result in more businesses going bust in the New Year as they struggle to ring up sales.

Reports of a bad week of sales at retailer Marks & Spencer have prompted Pali International recommend selling the stock.

Industry sources revealed Marks & Sparks had “an appalling week” last week, with sales down by as much as 25% on last year.

With Debenhams announcing more ‘Up to 50% off’ discounts, the M&S discount food might not be enough to draw customers in to buy other goods, leading to another one day sale before Christmas.

Woolworth’s is expected to start an up to 70% off clearance sale on Boxing Day and may close a week later leaving 30,000 employees worrying about their New Year prospects over the holidays.

Holidaymakers face an expensive Christmas as the tourist £1 slumped to 1.07 euros. The pound climbed against the US dollar again to $1.53.

The FTSE is still stagnant – up slightly from 4309 to 4324, while on Wall Street, the DOW dipped from 8921 to 8824.