Marks & Spencer cut 20 per cent off its prices for a second time today as the high street retailer stepped up its battle to attract Christmas shoppers.

The latest one-day promotion, covering more than 50 per cent of products, took place amid wider signs customers were finding plenty of bargains on the high street.

Yesterday, Woolworths cut 10 per cent from prices for one day while a clutch of other firms have been involved in sale activity, including the so-called "guerrilla promotions" being used by M&S for the first time this year.

Industry surveys have pointed to a tough festive period for retailers, although both M&S and Woolworths denied panic measures.

M&S, which has around 370 outlets in the UK, said its first 20 per cent promotion last month was so successful that it had decided to repeat the exercise.

Woolworths, which achieves 40 per cent of profits in the run-up to Christmas, said that its sale was part of a pre-planned strategy that also involved three-for-two offers in November.

For M&S, this Christmas season is particularly important after the retailer's chief executive, Stuart Rose, successfully fought off a takeover approach from Philip Green, the retail tycoon, earlier this year.

A survey by the Confederation of British Industry earlier this week said most high street retailers were bracing themselves for a gloomy Christmas as consumers show a reluctance to spend on expensive items because of higher borrowing and energy costs.

Competition has also intensified, particularly in the supermarket sector following the takeover of Safeway by Morrisons.

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