Two more UK retailers in differing sectors have confirmed the gloom on the high street, reporting sharp declines in sales and difficult trading conditions.

Alexon, the fashion group that includes brands such as Dash and Bay Trading, saw profits fall by 40 per cent in the first half. Topps Tiles, the country's biggest seller of tiled and wooden flooring, said revenues this year would be flat, despite further store openings, but that it had successfully renegotiated its loans.

Alexon said operating profits in the six weeks to July 26 were down from £8.7 million to £5.2 million, and the dividend will be a third of last year's payment at 1p. Bay Trading slumped to an operating loss of £1.4 million, from a £1.2 million profit last time. Across the group, sales were 5 per cent lower at £123 million, or down 7 per cent in like-for-like terms.

Like-for-like sales continued to fall into the second half and the outcome for the full year would again depend on Christmas, said Jane McNally, who arrived as chief executive in June. But the group's core market of women over 65 and the young teens to twenties was in demographic terms expected to rise, and this market had been resilient in difficult economic times. Alexon stock dipped 8.25p to 41p by lunchtime.

Topps Tiles, in a pre-close period trading statement, said like-for-like sales in the past eight weeks were off by 13 per cent. Like-for-like revenues in the year to September 27 were expected to be 5 per cent lower, stripping out the effects of store openings, although profits would be in line with analysts' estimates.

However, the shares rose 1.5p to 63p after the group said it had renegotiated its loan facility, which Kaupthing analysts said removed "a very important straightjacket”.

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