Stores and shops in Britain are likely to have to carry unsold stock worth billions of pounds into the New Year sales because of disappointing Christmas spending by consumers, according to business analysts.

But they forecast bumper spending in the January sales with total likely expenditure in the non-food sector to be about £6.7bn - 9% more than last January.

While the "disappointing" Christmas trade has been bad news for retailers who overstocked in the expectation of a bumper Christmas, shoppers could look forward to bargains galore as shops increase discounts by up to 50% above normal in a desperate attempt to sell the goods.

Clothing and shoe shops were likely to see the biggest price cuts, with prices likely to fall far more than usual between December and January.

The Centre for Economics and Business Research (CEBR) forecast up to £3bn of stock in the non-food sector would be carried over into the January sales.

"Christmas has certainly been disappointing, although of course, we don't know what is happening during this weekend," said Professor Douglas McWilliams of the CEBR.

"Shops thought this was going to be a bumper Christmas and bought stock in large quantities but will now be left with a huge overhang of unsold stock."

Contributing to the disappointing performance have been five interest rate rises since May, tax increases and uncertainty on the stock market since the autumn, he added.

"The message is to shop around for late Christmas presents. Some stores seem to be starting their January discounts early," said Professor McWilliams.

"Or else consider giving IOUs and buy better, or cheaper presents in January."

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