But margins have improved
House of Fraser has revealed a like-for-like sales drop of 2.4 per cent, in a trading statement released today.

The department store group attributed the decline to a reduction in promotional activity, but said it had seen an improvement in margins as a result.

Total sales for the 19 weeks to June 10 increased 8.8 per cent, driven by store openings and trading from the recently acquired Jenners and James Beattie businesses.

The group said the integration of Jenners and Beatties was moving ahead of schedule, with head office and management structures now fully aligned across the group. The introduction of new brands into the two chains is expected to be completed by the end of August, rather than mid-Autumn, as previously planned.

Group chief executive John Coleman said: 'In March, we said we anticipated the trading environment would remain difficult for the first half of this year and we expected to experience further cost pressures. This remains our view.'

Following weeks of speculation, last Friday the department store group confirmed it had been approached by Icelandic investment group Baugur about a potential cash offer for the chain.