Department stores group House of Fraser and fashion chain Ted Baker proved today that there is still some life on the High Street.

House of Fraser, part-owned by the troubled Icelandic investor Baugur, reported a 4.5% rise in total sales on the previous year in the five weeks to 3 January, although like-for-like sales fell 1.5% in the same period, reflecting the tough trading conditions for retailers.

But the chain said it had seen the best ever performance at its Oxford Street branch in the week after Christmas, while its new store in the Westfield Shopping Centre has been attracting swathes of shoppers.

“There is no doubt that the retail sector has experienced one of its toughest years to date. However, our performance over the Christmas period was positive and we are satisfied with the robustness of our business,” chairman Don McCarthy said today.

With the outlook for 2009 remaining “challenging”, House of Fraser announced it will scrap underperforming brands and grow its star performers in coming months.
The company also said it has a cash pile of over £85 million and continues to repay its debts ahead of schedule.

Meanwhile, upmarket clothing brand Ted Baker reported a 7.2% jump in sales from the start of November to Christmas.

But profit margins have been hit by increased spending on marketing, meaning the company now expects pre-tax profits to come in at the low end of forecasts of between £19 million and £23 million.

Founder and chief executive Ray Kelvin described its trading figures as a “a creditable performance in a very challenging market”.