Both Debenhams and Sir Philip Green’s Arcadia have produced solid financial results despite an awful economic backdrop. What both have in common is that they are investing in their businesses, despite the tough outlook, and are positioning themselves for future growth.

The question now on the high street is what trade will be like during the run-up to Christmas, and Rob Templeman, the Debs chief executive, expects big promotions. That was also the case last year when, with Woolworths teetering on the brink and forced into a fire sale, toy retailers found the competition particularly tough.

This year, despite consumer spending being subdued, it will perhaps be less difficult. Why? Because about 30 retailers have gone bust during the past year and, for those that have survived, there is about £5 billion in sales up for grabs. Just look, for example, at how HMV has thrived in the absence of Zavvi and Woolies, and how the collapse of Adams has boosted Mothercare’s sales.

That said, the weather at present is not helping the clothes retailers, for whom — if a cold snap does not materialise soon — a bloodbath may well beckon.

The planned VAT rise after Christmas also casts a cloud — although, as January sales often see prices cut by up to 40 per cent, that should mask the rise from 15 per cent to 17.5 per cent.

During the past few years there has always been at least one retailing analyst in the City brave enough to predict that Christmas will be cancelled. But, ultimately, it always happens.

The people who should be more worried, as we head into 2010, are the commercial property landlords. Sir Philip is aiming to move his Arcadia brands into Bhs and, in so doing, may let some leases go unless rent reductions are forthcoming. Expect him to play hardball.

Moreover, many retailers resent the fact that, where their competitors have entered into company voluntary arrangements (CVA), they have been able to achieve big rent reductions from landlords, who are often the biggest creditors.

Those retailers who survive are more reliable tenants than those who have had to resort to a CVA to keep afloat. They have every justification in demanding equal terms to weaker rivals.

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