Holiday sales hearten music retailers.

Strong music sales over the Christmas and New Year period has provoked a mood of cautious optimism among specialist music retailers during the first days of 2009.

There is little doubt that with the doors locked on Woolworths and with Zavvi going in to administration - businesses that in 2007 represented nearly 20% of the total albums market - high street music retail is facing unprecedented challenges.

But strong album titles such as Take That's The Circus and the soaring value of the Euro have helped many "bricks and mortar" retailers enjoy success during the Christmas period despite disappointing figures from the US which show CD sales plunged nearly 20% to 360.8m units last year and early indications that the value of the UK market has shrunk by as much as 10%.

Rough Trade co-owner Nigel House says that sales value over Christmas was up between 10% and 15% on the previous year thanks largely to the quality of the products on offer. "I think 2008 was a fantastic year for music and albums particularly. We have been punting out our Top 10 albums of the year and this has really helped. Good music is easy to sell; when there isn't much around that's when it gets hard."

House says that the Rough Trade outlets have enjoyed a noticeable rise in trade from tourists, something that Edinburgh-based Avalanche Records owner Kevin Buckle has also ...