Tesco (TSCO.L) and Marks & Spencer (MKS.L), two of Britain's biggest retailers, posted better than expected Christmas sales as people snapped up festive treats despite a deepening cost-of-living crisis. In-store sales were particularly strong, with strikes by postal workers giving an extra reason to return to the High Street. Results on Wednesday from another big supermarket, Sainsbury's (SBRY.L), showed a similar trend, confounding retailers' worries that Christmas trading would be sluggish given double-digit UK inflation and low consumer confidence. It said on Thursday that its revenues were down 3% in the four months before Dec. 31, with UK sales down 8%. Outside the Christmas splurge on food and gifts, Britain's retail market is already finding consumers are cutting back.

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