Today – at 12.15pm, to be precise – retail spending is expected to reach its peak during this tumultuous year. That is the time when Visa believes 210,000 card transactions will start to take place on its network.

But rather than savouring a last-minute rush to the tills, retailers are hanging on desperately, hoping that a slew of last minute discounts will stave off what some fear will be the worst Christmas since rubbish piled on the streets during the “winter of discontent” in 1978.

B&Q, the DIY chain, yesterday joined the rush to cut prices early and heavily, announcing up to 75 per cent off on thousands of lines beginning 7am on Christmas Eve. Superdrug announced up to 90 per cent off from Boxing Day. Marks & Spencer has already taken a third off all knitwear, lingerie and sleepwear.

Analysts fear that the level of discounting has simply eroded retailers’ ability to charge full price. Shoppers appear to be delaying their purchases in anticipation of further discounts. Nick Bubb, an analyst at Pali International, said the sales were leading to a vicious circle where falling sales led to further discounting, which is damaging the economy.

There was a suggestion yesterday that consumer worries may have bottomed-out. A survey by GfK NOP indicated that interest rate cuts and the fall in VAT have boosted consumer confidence despite an increase in unemployment and the banking crisis.

Retailers are also drawing solace from Christmas Day falling on a Thursday, which means shoppers have an extra two shopping days in the week leading to the 25th. This will further accentuate the trend for Christmas spending to come late.

Even the weather is helping. This weekend’s forecast is for a return of dry, frosty, seasonal conditions.

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