The Week Ahead: High street to find out whether it is a happy new year or not

With heavy rainfall and price cuts, the picture is bleak for fashion retailers

The big retailers are set to report the numbers for the crucial Christmas shopping period (Getty)

Britain’s high street will find out whether it is a happy new year or not this week as some of the big retailers report the crucial Christmas shopping period.

Marks & Spencer is set to release a trading statement on Thursday, while Next, its clothing rival, updates investors tomorrow. Shares in both companies have slumped since the start of December as the cold weather failed to arrive in the UK, which is expected to hurt sales of winter clothing ranges.

Throw in heavy rainfall, the heavy price-slashing on Black Friday and the Paris terrorist attacks and the picture is bleak for fashion retailers.

According to Ipsos Retail, sales fell 1.8 per cent in the run-up to Christmas compared with 2014, even after what was described by the retail consultant as an “extraordinary” late rush.

Analysts expect the same old story from M&S – strong food sales but poor figures for clothing. Broker Nomura expects like-for-like sales in the division to have crashed 5.5 per cent.

Next, which refuses to drop prices until Boxing Day, is expected to have proved more robust.

The statements will be closely watched by backers of Debenhams, the struggling department store group that has been hit hard by the fears about festive trading, as has Mike Ashley’s Sports Direct.

A trading statement is due on Thursday from Poundland. It is the first time the retailer, which sells everything for £1, will report to investors since its profit warning in November.

Elsewhere, there is an update scheduled on Wednesday from Topps Tiles, which is expected to have benefited from the mild weather, with the DIY season longer than normal.

That has been reflected in the share price, which is close to eight-year highs.

Housebuilder Persimmon is set to issue a trading statement on Thursday, while airlines easyJet and British Airways owner IAG unveil the latest passenger numbers for December on Thursday and Friday respectively.

On the economic front, the focus is back on China, with manufacturing and services data shining a light on the pace of growth in the world’s second-biggest economy.