High Street retailer Woolworths unveiled narrower losses for the first half of the year, and said it was viewing the vital Christmas trading period with "cautious optimism".

The profitability of Woolworths this year is dependent upon the success of the Christmas trading period

Trevor Bish-Jones, chief executive, Woolworths

The company reported a pre-tax loss of �41.2m ($64.2m) before one-off items for the six months to the beginning of August, compared with a loss of �46.1m for the same period last year.

Underlying sales grew by 0.6% in the May to July period, compared with a fall of 1.1% in the previous quarter.

"We have reduced the first half loss and are in good shape to deliver an improved performance in the full year," said chief executive Trevor Bish-Jones.

Banking on Christmas

Woolworths said it had made extensive preparations to capitalise on the crucial festive period.

It will be taking on 6,000 extra staff and adding 800 tills to cope with the Christmas rush.

"The profitability of Woolworths this year is dependent upon the success of the Christmas trading period," Mr Bish-Jones said.

The company added that it had increased the number of store deliveries to make sure shelves remained stocked up, and that it had stepped up its advertising.

Difficult year

Woolworths has had a tough time since it split from its parent company, Kingfisher, a year ago.

In May, Woolworths told investors it was still struggling to increase business, with sales at its city centre stores especially badly hit.

The firm had big hopes for its food & wine corner shops, the Woolworths General Stores, but the rollout of this chain has now been abandoned because of poor sales.

The group also ended merger talks with Philip Green's BHS in June.

In the City, Woolworths shares closed 1.75p higher at 33p on Tuesday.