British retailer Matalan has reported a decrease of 5.5 percent in like-for-like sales during the Christmas period. The company said homewares had performed poorly and that the Christmas gift ranges had been "particularly disappointing". However, clothing sales had improved compared to earlier in the season, with shoppers purchasing coats and knitwear.

The retailer said it had continued to concentrate on gross margin, which had risen 0.3 percent over the 19 week period ended 8 January. Clothing gross margin rose 1.3 percent. Overall sales dropped 2.1 percent over the 10 weeks to 7 January. "In a tough trading environment we have maintained market share in our core clothing business, which represents 80 percent of sales," said chief executive John King. "Home and Christmas gifts performed poorly and actions are underway to address this."