Christmas sales surged by one-fifth at fashion brand Ted Baker, despite the gloomy economic climate and a reluctance to use promotional offers.

Smaller gift items such as bags sold well over the holiday period, while staple items, such as formal suits, continued to perform well.

Total retail sales rose 20.9% in the eight weeks to January 5, and the company also sold more online than in any previous year.

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Chief executive Ray Kelvin, who founded the company as a Glasgow shirt store in 1988, said: "The group has delivered a good result over Christmas."