John Lewis tried to put a positive spin on its latest sales figures today, claiming that Christmas might not be as bad as feared.

The department stores chain said that in the seven days to Saturday, sales were up 11.3% on the previous week.

But they were still down 13% compared with the same week a year ago, which is the more usual way of analysing trends.

Dan Knowles, director of selling operations, said: "Inevitably, because of the current economic climate sales are still down on last year. However, this week has shown that Christmas shopping has certainly begun." John Lewis, seen as a bellwether for the health of the retail sector, said it is matching prices on offer from competitors despite "discount days" by rivals.

Toy maker Character Group today issued a profits warning, saying market expectations for 2009 are "too optimistic".

Fashion group Alexon said sales in the 17 weeks to 22 November fell 11% on the last year. The firm, which owns the Ann Harvey chain, said trading is "increasingly challenging".