Food retailer Iceland said the froth had come off Christmas sales today after opting not to entice shoppers with cheap beer.

Like-for-like sales fell 4.2% at the company's core Iceland Foods business as it decided not to repeat heavily discounted offers seen last year.

Certain lines, particularly beer and soft drinks, were affected as the group preferred to ensure it met profit targets for the year.

Chief executive Bill Grimsey said: "We are a group in the recovery process and took the view that leading into Christmas we needed to ensure that we met our profit expectations and we are on track to do so.

"Our decision not to support sales with massive non-profit making lines, particularly in the area of beer, was the right one."

Despite the weaker like-for-like sales and lower footfall, the group said average spend at its Iceland stores rose 6%.

The business, which also includes the Booker cash-and-carry chain, saw overall like-for-like sales dip 0.8% during the five weeks to January 4. The figure was 0.2% higher in the last 16 weeks.