MICHAEL Sharp, the chief executive of Debenhams, dismissed much of the gloom shrouding the retail sector, saying he was "optimistic" about the state of the high street and the prospects for Christmas.

The department store group yesterday announced an increase in profits.

Mr Sharp waved aside a raft of gloomy reports in recent weeks that consumers had dramatically cut back on spending during September and October.

He said the company was continuing to attract shoppers and that it was confident enough about the long-term future of the economy to open nine new stores in the next four years.

Mr Sharp’s bullish view of the high street came as the Office of National Statistics (ONS) said retail sales rose 0.6% in September. That was stronger than analysts had forecast and more than reversed a 0.4% fall in volumes in August.

A rise in laptop and computer game sales helped to boost the numbers. The ONS also said internet-based sales continued to climb.

Mr Sharp, who took over as chief executive last month, said: “I know the market is difficult, but I’m confident about the prospects for Debenhams.”

The London-based group’s pre-tax profits jumped from £140 million to £166.1m, though they benefited from last year being a 53-week period to September 3, which added about £8m to its bottom line.

The leap in profits came despite rising wholesale prices, notably for cotton-based products, which have increased by about 70% in the past year, pushing up the price of many clothes.

It has also suffered from many customers cutting back on big purchases, notably electronics and furniture. – a factor reported by other high street retailers.

Debenhams, which has nearly 20 stores in Scotland, said it was selling a greater proportion of electronics and homewares over the internet and the company, added that it was halfway through its project of installing 650 internet kiosks in its stores, to help shoppers buy products that are out of stock when they visit a high street outlet.

Mr Sharp emphasised this was not a method to cut down on staff costs.

In total, 7.4% of the retailer’s sales are conducted online.

The company reported a 4.5% in sales to £2.68bn on the 53- week basis.

On a 52-week basis, the firm’s figures increased 2.9%, with like-for-like sales down 0.3%, once the benefit of the higher rate of value added tax was stripped out.

The expansion drive, which will create 4050 new jobs, builds on the 20 store refurbishments announced by the retailer in June.

The chain, which operates 163 stores in the UK and Ireland, eventually hopes to boost its British store portfolio to 240.

The nine new stores will open between 2012 and 2015 in Chesterfield, Burton upon Trent, Darlington, Bradford, Hereford, Barnsley and Macclesfield, and Carlow and Sligo in Ireland.