Allders, the department store group currently at the centre of a takeover battle, said like-for-like sales - which ignore the effects of new store openings - fell 2.6% in the 16 weeks to 18 January.

But retailer Blacks Leisure had a stronger performance, and said it remained on course to meet expectations for its financial year.

The camping and hiking gear specialist said like-for-like sales in the seven weeks to 11 January jumped rose 3%, outperforming the previous Christmas

Blacks is still recovering from the devastating impact the foot-and-mouth outbreak had on the British countryside and demand for its products.

The news pushed shares in the outdoor specialist up almost 6% shortly after the update.

Bid battle

Allders shares were down 2.7% at 159.5p in morning trade.

The department store group said it continued to support a £132m bid from property developer Minerva, which is its largest shareholder, in spite of interest from Scottish retail entrepreneur Tom Hunter.

The Scottish businessman, who has built up a 10.8% stake in Allders through West Coast Capital, has also approached rival department stores group House of Fraser about a possible bid.

Analysts have suggested Mr Hunter wants to merge Allders with House of Fraser and reap the estimated £25m in cost savings.

Minerva responded to media speculation of a deal with Hunter last week by saying it would not sell its Allders stake for at least a year.