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There was further evidence that the economic downturn is keeping Christmas extravagance at bay on Tuesday as retailers reported many of this year's best-selling gifts were far below the £100 mark.
The last weekend before Christmas was expected to be the busiest period of 2008 for retailers. Although shoppers hit the high street nationally in droves for last-minute shopping, sales remained down in contrast to the corresponding period in 2007 and retailers reported that customers were seeking cheaper goods.
While in 2007, John Lewis saw cashmere jumpers and champagne flying off the shelves in the run-up to Christmas, the retailer reports that this year's best-selling gifts have tended towards the more modestly priced. Its top-selling items include a remote controlled Fire-Fly helicopter costing £14.50, John Lewis's own-brand, hand-knitted slippers for £19.50 and a battery-operated mini-massager by HoMedics, at £9.50. The cheapest top-seller is a children's torch shaped like a penguin costing £4.80.
John Lewis's best-selling electrical product based on volume sales so far is the cheapest available iPod, the Shuffle, which costs just £31.
Helen Keppel-Compton, head of consumer technology at John Lewis, says: "Overall sales results show that people aren't spending as much as last year – but they are still spending. In some cases, when there is an opportunity to buy something just as good as a similar product but for less, then people will go for it – so people will opt for a cheaper digital radio which is still just as good, or has the same features, as a very expensive one."
At Marks & Spencer, the most expensive Christmas bestseller is a leather holdall for £49.50. Also being snapped up by shoppers are juggling balls at £5 and a ragdoll for £9.50.
The Nintendo Wii is at the top of Argos's best-selling gifts list for Christmas; it retails at £176.16. However, Steve Knight, commercial director for the company, said families buying expensive gifts like the Wii were likely to be giving it as a group gift for their children, rather than buying each family member *something separate.
He said: "Many people are now buying gaming systems as presents for the whole family – it saves on the cost of getting many individual gifts."
Other gifts on the Argos popular present list include the Mamma Mia! DVD for £9.69, Ben 10 collectible figures and a Cadbury's chocolate machine, both for £4.89.
Richard Dodd, from the British Retail Consortium, says: "People are certainly out in big numbers, but it's difficult to tell whether they are really spending. They are certainly more price-conscious than before, and they are looking for value. They are concentrating on spending less and on fewer items – they are more often than not going to buying replacement purchases or presents that people need, rather than discretionary gifts."
The most recent figures for John Lewis's sales show how retailers are being hit by consumers' efforts to scale back their spending. Sales at the store were up 1.3% week on week in the seven days to 20 December; however, overall sales are down 1.8% compared to the same week's figures in 2007.
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