Marks & Spencer will hold a one-day 20 per cent off sale in reaction to the downturn in consumer spending.

The retailer will slash prices on Thursday in its fashion and homewares departments in its biggest one-day promotion for four years.

M&S will join other big name high street retailers discounting their stock this week, including Debenhams and Bhs.

Analyst Freddie George said the M&S sale was a "clear sign that sales are well behind budget" as the retailer enters the festive season.

"Christmas 2008 has the feel of being the worst retailing Christmas for years," he said.

M&S executive chairman Sir Stuart Rose has not attempted such a large one-day sale since his "Christmas Spectacular" just after he took over in 2004.

General merchandise - including clothing - saw like-for-like sales fall 6.4 per cent in the 13 weeks to September 27 although Sir Stuart has said M&S continued to offer "quality, stylish products".

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