Asda fired the opening shot, launching its Christmas Toy Event, offering 50 per cent or more in discounts on over 100 items the retailer stocks, resulting in a savings of £6 million for Asda customers.

Not to be outdone, Asda rival Tesco waded in with its own 50 per cent sale which it says will save its shoppers £10 million.

The move comes as retailers fight to fill the sales gap left after Woolworths disappeared from the market, and competition is expected to be especially intense during what may prove to be a period of fragile recovery for the UK economy.

Asda launched its Christmas Toy Event after surveying 8000 of its customers, finding that 73 per cent of parents had already began their Christmas shopping and 20 per cent were anxious about the costs of buying presents for their children.

An Asda spokesperson said: “Shoppers need to be more prepared so they can spread the cost of Christmas, while all retailers will be competing to get customers through their doors.”

Click Here To Buy Toys Online From Asda Direct