Hopes for a cheerier holiday season have been sparked as two of Britain's biggest retailers, Debenhams and Arcadia, have made their larger than expected profits public. Arcadia, a venture of Sir Philip Green, stated that its profits from August 29 onward have surged by 13%. Debenhams, on the other hand, said it was up by 13.7%. Both power houses have posted similar profits, thereby backing the fact that the economic downturn has started to look up.

Arcadia said it owes its profits to increased sales and record earnings brought on by its top operators - Topshop, Topman, Miss Selfridge and Dorothy Perkins. Debenhams, on the other hand, is crediting tight cost cuts and its designer ranges John Rocha and Jasper Conran, as profit earners.

In light of the new profits achieved, both Arcadia and Debenhams have revealed plans to expand even further into the overseas markets.

With these positive figures shared by the country's top retail houses, Christmas and Holiday season sales have picked up even more. The developments are having a positive impact on the markets.