Two of Britain's biggest retailers reported a drop in sales in the run-up to Christmas, adding to signs that bad weather compounded a tough environment for consumers during the biggest spending period of the year.
Next, Britain's number two fashion chain behind Marks & Spencer, said today that sales at shops open at least a year fell 6.1% from August 1 to December 24.
Music, books, DVDs and games retailer HMV Group said full-year profit would be around the lower end of forecasts and that meeting a test of its lending rules in April would be tight.
The updates, the first by major retailers following the key Christmas trading period, will add to fears that severe winter weather deterred shoppers already worried about rising taxes and public spending cuts.
Next, which runs over 500 stores in Britain and Ireland, estimated it lost £22m sterling of full-price sales as a result of the snow, equivalent to about 2.2% of total sales.
However, sales at its Directory home shopping business rose 8.7% and the group said it expected a full-year profit of £540-555m, within its previous forecast range.
HMV, which has long been struggling with cut-price competition from supermarkets and the internet, said sales at British and Irish stores open at least a year dropped 13.6% in the five weeks to January 1.
The group, originally scheduled to publish its Christmas figures next week, said it planned to exit around 60 British stores over the next year and take other steps to make sure it passes a test of its lending rules in April.
A spokesperson for HMV in the UK said the 60 shop closures would comprise 40 HMVs and 20 Waterstones outlets. She said HMV had not yet confirmed specific locations and could not confirm at this stage whether or not Ireland would be affected by the cutbacks or the store closures.
She said HMV was initially looking at locations where it had more than one outlet and would examine whether in some instances it may make sense to consolidate its activities in one store rather than maintain two or more close to one another.
Meanwhile, department store John Lewis shrugged off the impact of the freezing weather conditions today when it revealed a 7.6% hike in festive sales.
The group notched up sales of £545m in the five weeks to January 1 as online buying soared during the first snowfall.
Then shop trade took over as shoppers sought the reassurance of having goods in their hands.
John Lewis said total sales rose 8.9% - by 7.6% on a same-store basis - while online sales rose 42% on last year and have now reached more than £500m for the year to date.
