A new report by the consultancy predicts that UK retail sales will rise just 0.8% in November this year compared to last year, and just 3% in December, leaving retailers with mountains of unsold stock.

"They will have not anticipated the dramatic weakening of consumer demand since September and have ordered stock more in keeping with sales growth seen earlier in the year." the report said.

It's getting harder to attract shoppers

That could be good news for consumers who are increasingly leaving their Christmas shopping until the last minute, or waiting until the January sales to find bargains.

Verdict predicts that the best bargains will be in clothing and household goods, where unsold stocks could amount to 7% of total goods.

Christmas sales of food, drink and tobacco, and consumer electronics are predicted to be relatively strong.

Big retailers hit

Recently some of the biggest names in retailing, like Marks and Spencers, Sainsbury's, and Storehouse, owner of Bhs and Mothercare, have reported a sharp slowdown in sales.

Marks and Spencer was forced to introduce its first-ever pre-Christmas sale, the "value" campaign.

But Verdict believes that the dramatic price cuts will not be enough to get shoppers in an early Christmas spending mood.

It says spending will still be concentrated in the last week before Christmas.

Consumers have become more canny and expect further reductions in price.

The fears of a global recession have dealt a blow to consumer confidence.

"Such spending caution, if prolonged, could precipitate the very recession that consumers fear," the report said.