Waterstone's owner HMV says the UK book market has come under strain because of a downturn in consumer spending.
The high street bookseller saw its like-for-like sales drop 3.1% in the 26 weeks to October 25. The comparison showed a 1.4% fall when adjusted for the impact of Harry Potter and the Deathly Hallows on last year's result.
HMV said its markets had deteriorated since the end of October in line with a general downturn in consumer confidence. It added the book market has seen a 'marked deterioration' in the five weeks to November 29.
Waterstone's operating loss before exceptional items increased in the first half year to £9.3m from £8.9m in 2007.
HMV said the book market as a whole contracted 5% during the period and had been particularly hit by poor performance in the non-fiction category. Like-for-like sales at the HMV music chain were ahead 1.6%, with operating losses over the seasonal quieter trading period narrowing by £400,000 to £12.7m. Losses before tax for the group were £27.5m, against £28.7m a year earlier.
