Department store chain John Lewis yesterday reported a surge in sales as shoppers snapped up last-minute gifts and post-Christmas bargains.

Sales in the week to December 29 were up 17.3 per cent on the year before, bringing the total for the year so far to 6.4 per cent ahead.

Last-minute Christmas shoppers helped boost sales across John Lewis' department stores, which include London's flagship Oxford Street branch and Peter Jones in Sloane Square.

But the arrival of Christmas Day did not deter shoppers in the slightest and the partnership reported a "solid start" to clearance.

Director of trading Luke Mayhew said it was a "useful way" to enter the new year.

John Lewis, which has branches across the UK, has benefited from the consumer boom on the High Street during recent weeks.

In the week to December 8, sales reached record highs when they topped £72 million and in the last full week before Christmas, to December 22, the privately-owned firm took £76.9 million, with widescreen TVs, DVD players, toys and books among the best-selling items.

Speculation is also mounting that fellow retailer Marks & Spencer had a strong Christmas, prompting broker Deutsche Bank to up its price targets and raise earnings estimates.

The broker is optimistic M&S, which during recent years hasbattled against falling sales and profits, had its best Christmas since 1997.

Shares in the group sparked on the note and gained 6.5p at 366.75p, the highest price for more than two years.

M&S is expected to release its Christmas trading statement on Wednesday, January 16.