Shares in retail giant Tesco have been labelled the top high street stock in terms of investment potential.

This is according to a survey by Barclays Stockbrokers, which found 47 per cent of traders named the supermarket as the retail shares with the best chance of big returns.

Meanwhile, nearly one in five backed rival supermarket Sainsbury's, ahead of Marks and Spencer on 14 per cent.

Halfords received eight per cent of the votes, with Dixons and HMV getting seven per cent and five per cent respectively.

In terms of the outlook for retail stocks, more than half of the respondents said that the sector was on their radar.

Two-fifths said they are already holding UK retail stocks in their portfolio, while 15 per cent said they were interested and were currently monitoring the industry for opportunities.

Paul Inkster, head of product at Barclays Stockbrokers, said: "Our research reveals investors favour supermarket giant Tesco for investment opportunities in the UK retail sector and, while there is a mixed outlook on the sector among clients, we expect investors to keep a close eye on it in the lead up to the Christmas season to ensure they can maximise the potential investment opportunities."

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