This week's flood of Christmas sales updates from U.K. retailers should show more evidence that food and discount retailers are doing better than sellers of big-ticket electrical goods, home furnishings and satellite navigation systems.

Tesco PLC (TSCO.LN), the nation's biggest retailer by sales, is expected Tuesday to report a modest rise in same-store-sales, excluding fuel, underperforming its main supermarket rivals due to its bigger exposure to nonfood lines like clothing, homeware and electrical goods.

On Thursday, news of big falls in same-store sales are expected from DSG International PLC (DSGI.LN), the country's biggest electrical goods retailer, and from Home Retail Group PLC (HOME.LN), which operates do-it-yourself chain Homebase and general-merchandise chain Argos.

Christmas updates delivered so far suggest that Yule Tide trading wasn't as bad as the market had feared.

The main question for investors going forward is, will spending dry up now that Christmas is over and the sales are coming to an end?

Last week's trading updates showed that spending on food, health and low-ticket items was strong while demand was weaker for electrical goods and cars.

On Friday, sportswear retailer JD Sports Fashion PLC (JD.LN) pleased investors by saying it expects full-year profit to beat market forecasts after it had a lucrative Christmas. Meanwhile shares in Jessops PLC (JSP.LN) soared Friday after the nation's biggest photographic retailer posted higher seasonal period sales.

Their upbeat reports capped a week of mainly positive sales reports from retailers.

The nation's third-biggest supermarket chain by sales, J Sainsbury PLC (SBRY.LN), Thursday reported its 'best ever Christmas performance' and better-than-expected fiscal third-quarter sales.

Good holiday sales were also reported by department store House of Fraser and fashion retailer Peacocks. Upmarket fashion group Ted Baker however said heavy discounting over Christmas hit its margins and it now expects full-year profit to be at the lower end of market expectations.

Sainsbury's strong showing contrasted with Wednesday's poor Christmas trading update from Marks & Spencer, which had its worst quarterly sales performance for a decade and responded by closing 27 stores and cutting 1,230 jobs.

The U.K. retail holiday trading season kicked-off on Jan. 5 when both U.K. department store chain John Lewis and London department store Liberty PLC (LBE.LN) presented encouraging sales reports.

The following day, Next PLC (NXT.LN), Debenhams PLC (DEB.LN), New Look and The Co-operative reported better-than-expected Christmas sales performances.

The sector's downturn has nonetheless claimed a number of victims.

Stricken china and glass group Waterford Wedgwood PLC (WTFU.DB) last week became the latest household name to collapse. Others forced into administration include Passion for Perfume Ltd., Adams Childrenswear Ltd., clothing chain USC, CD, DVD and video game retailer zavvi, coffee-and-tea purveyor Whittards of Chelsea, clothing chain the Officers Club, Woolworths Group PLC (WLW.LN) and furniture retailer MFI.

Other U.K. retailers that are scheduled to report trading performances in coming days include:

 
Tue, Jan. 13: Tesco PLC (TSCO.LN) trading update 
              Topps Tiles PLC (TPT.LN) trading update 
              Jacques Vert PLC (JQV.LN) trading update 
              Game Group PLC (GMG.LN) trading update 
 
Thu, Jan. 15: DSG International PLC (DSGI.LN) update 
              Home Retail Group PLC (HOME.LN) 3Q 
              HMV Group PLC (HMV.LN) trading update 
              JJB Sports PLC (JJB.LN) trading update 
              Carphone Warehouse Group PLC (CPW.LN) 3Q 
              Associated British Foods PLC update 
              Halfords Group PLC (HFD.LN) trading update 
              Mothercare PLC (MTC.LN) trading update 
              Galiform PLC (GFRM.LN) trading update 
 
Mon, Jan. 19  ASOS PLC (ASC.LN) trading update 
 
Tue, Jan. 20: Kesa Electricals PLC (KESA.LN) trading update 
 
Thu, Jan. 22: William Morrison Supermarkets PLC (MRW.LN) 
 
Mon, Jan. 26: WH Smith PLC (SMWH.LN) AGM trading update 
 
Tue, Feb. 3: Carpetright PLC trading update

-By Lilly Vitorovich, Dow Jones Newswires; 44-0-207 842 9290; lilly.vitorovich@dowjones.com

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