Borders has reported a reduced loss in its first quarter, but sales at the bookseller continue to decline as consumers shifted to digital media offered by rivals.

The net loss narrowed to $64.1m (£44.3m) in the three months to May 1, from $86m (£59.5m) a year earlier. Revenue dropped to $547.2m (£378.4m) from $650.2m (£449.7m). Same-store sales in the company’s domestic business, which includes its bookstores and Borders.com, fell 11.4%.

Borders is set to launch its own electronic bookstore in June in an attempt to catch up with rival Barnes & Noble.