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| Sales fall at Next and Debenhams | Sales fall at Next and Debenhams |
| (41 minutes later) | |
| Two of the UK's biggest High Street names have announced falling like-for-like sales over the Christmas period. | Two of the UK's biggest High Street names have announced falling like-for-like sales over the Christmas period. |
| Clothing retailer Next announced that its sales had dropped 7% in the six months to Christmas Eve. It added there had been a good start to its sale. | Clothing retailer Next announced that its sales had dropped 7% in the six months to Christmas Eve. It added there had been a good start to its sale. |
| Meanwhile, Debenhams said its sales in the past 12 weeks had fallen 3.3%. | Meanwhile, Debenhams said its sales in the past 12 weeks had fallen 3.3%. |
| It said this had been a "creditable sales performance, given the extremely difficult and volatile conditions seen across the High Street". | It said this had been a "creditable sales performance, given the extremely difficult and volatile conditions seen across the High Street". |
| In early morning trade in London shares in Next were up 7% after the announcement, and those in Debenhams were up 30%. | |
| The updated trading figures had been in line with analysts' expectations. | |
| Both chains have been offering up to 70% off items in their seasonal sales. | Both chains have been offering up to 70% off items in their seasonal sales. |
| 'Challenging year' | 'Challenging year' |
| Next had refused to slash prices in the approach to Christmas - and said it expected sales clearance rates to be ahead of last year. | Next had refused to slash prices in the approach to Christmas - and said it expected sales clearance rates to be ahead of last year. |
| However, looking ahead to 2009, the firm said that it would be "another challenging year" and predicted negative like-for-like sales figures for the full year. | However, looking ahead to 2009, the firm said that it would be "another challenging year" and predicted negative like-for-like sales figures for the full year. |
| "We expect falling house prices, unemployment, and the fear of unemployment to continue to restrain spending," said Next in its statement. | "We expect falling house prices, unemployment, and the fear of unemployment to continue to restrain spending," said Next in its statement. |
| But it said it was well placed to weather the downturn, with a robust balance sheet and net debts of £670m. Next also said it would manage its costs and look to make further efficiencies. | But it said it was well placed to weather the downturn, with a robust balance sheet and net debts of £670m. Next also said it would manage its costs and look to make further efficiencies. |
| Cost controls | Cost controls |
| Debenhams, which has 153 stores in the UK and Irish Republic, has seen its shares fall more than 80% over the past two years on fears about its ability to pay its debts. | Debenhams, which has 153 stores in the UK and Irish Republic, has seen its shares fall more than 80% over the past two years on fears about its ability to pay its debts. |
| Despite the 3.6% fall in like-for-like sales over the past 12 weeks, this compared with a decline of 4.2% for the previous six weeks and meant that Debenhams' profits for the 18-week period had improved on a year earlier. | Despite the 3.6% fall in like-for-like sales over the past 12 weeks, this compared with a decline of 4.2% for the previous six weeks and meant that Debenhams' profits for the 18-week period had improved on a year earlier. |
| The retailer also said that, despite the tough environment, it had "continued to take market share from competitors in all major categories". | The retailer also said that, despite the tough environment, it had "continued to take market share from competitors in all major categories". |
| "Looking forward, the trading environment is likely to remain challenging for the whole retail sector," said chief executive Rob Templeman, adding that the firm would keep a tight control on costs, stock and capital. | "Looking forward, the trading environment is likely to remain challenging for the whole retail sector," said chief executive Rob Templeman, adding that the firm would keep a tight control on costs, stock and capital. |
| Job fears | Job fears |
| The updates come as the Nationwide's consumer confidence index fell to a new record low during December. | The updates come as the Nationwide's consumer confidence index fell to a new record low during December. |
| The index fell to just 47 last month, nearly half of its level of 84 in December 2007, and down from 51 in November. | The index fell to just 47 last month, nearly half of its level of 84 in December 2007, and down from 51 in November. |
| Fionnuala Earley, Nationwide's chief economist, said: "Consumers' confidence fell sharply in 2008, driven mainly by their sentiment about the economic and labour market situation. | Fionnuala Earley, Nationwide's chief economist, said: "Consumers' confidence fell sharply in 2008, driven mainly by their sentiment about the economic and labour market situation. |
| "As the UK enters recession, it is likely to be some time before we see confidence returning to levels seen in 2007." | "As the UK enters recession, it is likely to be some time before we see confidence returning to levels seen in 2007." |