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Hamleys said customers who had discovered a way to buy toys at a discount of up to 60 per cent would not receive their goods.

The store had offered people 20 per cent reductions as part of a pre-Christmas promotion.

But Web-savvy shoppers realised they could combine promotional codes to claim even bigger discounts.

As word spread over the weekend, Internet chatrooms were abuzz with talk of the savings.

One customer said he had bought a 'Star Wars' toy that makes children sound like Darth Vader for £18.99, nearly half its normal price.

'I've just got my son's birthday and Christmas presents for the next century,' another said on the Money Saving Expert site.

Shoppers said the overloaded Web site slowed to a crawl before Hamleys finally pulled

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the plug.

Refusing to play the role of Father Christmas, Hamleys' Chief Executive Officer Nick Mather blamed a 'technical error' and refused to honour the sales.

'Multiple use of discount codes contravenes the terms and conditions of the offer,' he said in a statement. 'These transactions are fraudulent and we are unable to fulfil these orders.'

He would not say how many people were involved, but denied reports the exploit had created a shortage of stock.

Customers have been offered the chance to replace their original orders with a 25 per cent discount.

Hamleys is among some of the biggest names on the high street to have turned to the Internet to try to kickstart Christmas sales.

Money-saving vouchers have been flying between millions of email inboxes as part of 'viral marketing' campaigns.

Earlier this month, off-licence chain Threshers said its Christmas discount voucher scheme for selected suppliers and their families had spiralled out of control.

Its website crashed after more than a million money-saving vouchers were downloaded.

A technical error on the Woolworths website meant televisions worth £1,000 were being advertised for sale at just £150.

Hamleys, owned by Icelandic investor Baugur, is one of the world's most famous toy retailers. The first Hamleys store opened in London in 1760.