SUSSEX high streets should brace themselves for more doom and gloom.

Strong demand from bargain-hungry shoppers after Christmas will not be enough to prevent downbeat trading statements over the next few weeks and depressed results later in the year, claims a new report by retail consultancy Verdict Research.

The forecast came as retailers trickle out sales figures for the vital Christmas period.

Fashion retailer Next was the first of the major high street operators to give an update, reporting an eight per cent rise in like-for-like sales at its stores between August and December 24.

Troubled Marks & Spencer is due to bring out its eagerly awaited Christmas trading statement next Wednesday following a difficult year which has seen profits slump.

M&S has been identified as a takeover target, but any possible bidder is expected to wait until after the group's update before striking.

Verdict forecasts that retailers are set to see conditions get "much tougher" before they improve, with more floor space coming on stream and weak consumer demand.

Challenges for the retailer include persuading older people to spend more and making shopping more pleasurable and attractive.

The effect of Wal-Mart buying Asda will hit a host of retailers with its massive buying power, huge sales volumes and low margins.

And as surviving in the increasingly competitive environment will be tough, a sharp increase in mergers and acquisitions is expected as retailers seek to grow in scale to

survive.

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