RETAILERS are expecting shoppers to shrug off the credit crunch for a few weeks by indulging in a £12billion spending spree this Christmas.

Around 60 per cent of annual turnover comes in between November and January, according to the British Retail Consortium and data collection firm Nielsen.

While BRC director general Kevin Hawkins admits that these are challenging times for shops, he says these predicted sales, which would be five per cent up on a year ago.

But he warns that shops could be in for some cold turkey once the Christmas and New Year boom is over, predicting a sales slump as consumers tighten their belts.

Mr Hawkins said: "The retail sector has experienced challenging trading conditions this year and, with even tougher times ahead, these figures will be encouraging for many retailers.

"However, with the recent slump in consumer confidence and falling spending power, growth this year is likely to be driven by discounting.

"If retailers do see a boom this Christmas, it will be followed by a slump in spending, as consumers really start to feel the pinch and tighten their belts."

Sales of Christmas-related groceries and other festive paraphernalia are expected to reach £1.07 billion, four per cent more than a year ago.

Individuals are predicted to spend on average £435 on Christmas gifts, 12 per cent higher, with the most popular gifts clothes, books, films and music, with cosmetics, fragrances and gift vouchers also big sellers.

Each household will spend approximately £169 on Christmas food and drink, up four per cent, pushing the average cost of Christmas lunch to almost £16 per head, up from £14 in 2006.

This year, £1.3million of fresh Christmas trees will be sold, nine per cent down. Sales of Christmas decorations are estimated to rise by 18 per cent, reaching almost £28million. Christmas cracker sales are set to reach £25 million, a rise of 30 per cent.

Despite problems with avian flu, the industry expects Turkey sales to top £40 million, up seven per cent, with the highest sales growth from organic turkeys.

We are going to spend £12m on brussels sprouts, £33m on mince pies, £21m on Christmas puddings, £222m on boxed chocolates, and £10m on food hampers.