Budget retailer Matalan will struggle to get into the Christmas spirit if current trading continues, according to worrying analyst suggestions.

City analyst Richard Ratner from Seymour Pierce was reported by press as saying Matalan was flagging behind other retailers in terms of recent sales.

While some other high-street retailers has seen demand for winter lines pick up, Matalan is reportedly still battling to reverse sluggish demand, which, Ratner said, is "doubly bad news" for the retailer, as last week was one of the most important of the year.

The Financial times recently reported that Matalan had imposed a 2% cut on supplier payments for goods ordered for the second half of the year.

The retailer's interim figures showed a 10.6% slump in same-store sales.