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Department store chain Debenhams has blamed difficult trading conditions on the high street for a fall in its British outlet sales this morning.

Issuing a trading update for the 26 weeks to March 3rd, Debenhams revealed that like-for-like sales in its UK business declined by 4.5 per cent on the 26-week period up to March 4th 2006.

Overall sales rose by 5.8 per cent, but gross margins fell 0.4 per cent on the 2005/6 period. The retailer suggested that poor clothing sales in the run-up to Christmas and "the impact of the Roches store integration" were responsible for the slip.

"Although it is far too early to draw conclusions on the performance of our spring/summer ranges, we have been encouraged by the consumer reaction to our new collections," Rob Templeman, Debenhams' chief executive, said.

"We continue to expect the retail environment to remain challenging and to this end we will focus on managing our stocks, costs and cash margins," he added.

Britain's shopkeepers were relieved when disappointing sales during the festive season were rescued by a last-minute rush.

But clothing, stationery, footwear and big-ticket purchases were a little sluggish and the heavy price counting needed to tempt indifferent consumers into the stores also took their toll on profit margins.