Next, the fashion and homewares retailer, said like-for-like sales fell by 4.4 per cent in the 14 weeks to November 1, in line with expectations.

The clothing chain said in a interim statement this morning that it expects full-year profits to be in line with market expectations. It said that it also expected net debt to remain in the region of £670 million.

But it foresees little recovery in like-for-like sales in the coming year as customers continue to be squeezed by tumbling house prices and the threat of job losses.

"The outlook for consumer demand in 2009 is mixed," the statement said. "On the upside, lower interest rates and falling fuel and food bills are likely to increase the amount available for discretionary spending at some point during the year. On the downside, rising unemployment will reduce earnings and falling house prices may encourage people to save more."

"We expect negative like-for-like sales to continue throughout next year, though not necessarily at any worse rate than the current year."

Third-quarter sales at the Next Directory catalogue and online business were up slightly more than expected at 2.1 per cent, compared with company guidance of between 0 and 2 per cent.

Next is the latest retailer to feel the chill in the high street. Yesterday, Marks & Spencer said that like-for-like clothing and homeware sales had fallen by 6.2 per cent in the six months to September 27.

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