Entertainment retailer HMV admitted today that it was grappling with "very difficult conditions" as Christmas shoppers failed to add sparkle to sales.
The music and bookshop owner said it expected the high street environment to remain difficult for the rest of the year as it reported group like-for-like sales fell 1.3 per cent during the 12 weeks to December 16th.
Chief executive Simon Fox said: "We recognise we face very tough and rapidly changing markets and have to work hard to offset this."
HMV said like-for-like sales at its Waterstone's chain of stores dipped 3.7 per cent during the period as it was hit by promotional activity in the book market.
Meanwhile, like-for-like sales at HMV shops could only improve by 0.6 per cent as the value of the UK music market declined 14 per cent in October and November.
It meant the company was forced to admit full-year profits would be at the bottom of expectations. Analysts had forecast a range of between £69 million and £89 million.
