Group sales fell 3.6% to £982.9 million in the 26 weeks to 29 July and the loss before tax increased by £44.6 million.

The company has seen a decline in entertainment products such as CDs and DVDs although the recently formed 2entertain joint venture with the BBC seems to be performing well.

The company is putting more focus on Internet sales to compensate a flagging effort on the high street but it is not enough. Rising rents and rates and increasing energy and staff costs have not helped and as profits continue on a downward trend.