Topps Tiles like-for-like sales have dropped 4.2% in the 13 weeks ending January 1, although sales improved in the last six weeks of the period.

The DIY retailer said it was “encouraged” by the overall performance as it had previously reported a 6.9% decline in the first seven weeks of the period.

Non-executive chairman of the retailer Michael Jack said that trading conditions have remained tough during its first quarter.

He said: “Looking ahead, the board remain very conscious of the difficult outlook for the consumer in 2012 but we believe that our strategy of offering outstanding value for money combined with exceptional levels of service will continue to deliver the best results for both our customers and our shareholders.”

Topps Tiles, which trades from 320 stores, is still pressing ahead with store expansion and is planning to open 5 new stores during its current financial year.