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Despite persistent speculation of slow trading and reduced levels of consumer borrowing, the annual flood of retail Christmas trading updates has kicked off in imperious fashion thanks to a 10.8 per cent rise in like-for-like sales at Majestic Wine. Elliott Davis reports.

Shares in AIM-listed Majestic (MJW) were boosted 5p to a new high of 510p today as chief executive Tim How proudly reported the impressive figures. It seems as though strong sales of Champagne and Chablis as well Spanish and South African wines enabled Majestic to prosper in the eight weeks to 31 December.

However, with many other retailers due to release details of their Christmas trading in the next few days it remains to be seen how many will be able to follow Majestic's example.

According to analysts at Investec Securities while 'Christmas did happen, it came very late', a phenomena which seems to have led many retailers to begin discounting their products far earlier than usual. Sales may hold up fairly well, but investors should look for information on margins when the big retailers begin to report later in the week.

Ryhs Williams from Seymour Pierce is of a similar view. 'I think the January sales have been very strong for the clothing boys in particular and that this has got many of them out of Dodge City' quips Williams. 'However, it will be interesting to see what has happened to margins – my guess is that they will be well down'.

Among those Williams expects to have faired well are French Connection (FCCN), Monsoon (MSN) and the resurgent New Look (NEW). However, he also predicts that the likes of Allders (ADS) and Next (NXT) will struggle.

Either way the answers will arrive over the coming two weeks. Budget retailer TJ Hughes (HGH) is due to report tomorrow, followed by Dixons (DXNS) and Next among others on Wednesday. Department store chain House of Fraser (HOF), which is believed to have endured a particularly tough festive period, will publish its update on Thursday.