Woolworths paints a bleak view of the UK High Street

For the half year to 30 July, its pre-tax, pre-exceptional loss widened by 9.1% to �35.9m ($65m) compared with the same period a year earlier.

Pre-tax, post-exceptional losses narrowed by 55.9% to �14.5m, aided by the sale of two main units.

During the six months, Woolworths sold its former Big W out-of-town stores for �24.1m, and music chain MVC for �5.5m.

Our expectation is that consumer confidence will remain low and that customers will need to be encouraged to spend Woolworths boss Trevor Bish-Jones

Sales across the Woolworths group, from continuing operations, were down 2.9% to �1.038bn.

However, the firm said the level of the sales decline had since eased, slowing to 1.7% in the eight weeks since 25 July.

Weak shopping

Woolworths often posts a loss for the first half of the year before key Christmas trading rescues profits.

"Our expectation is that consumer confidence will remain low and that customers will need to be encouraged to spend," said Woolworths chief executive Trevor Bish-Jones.

The firm announced a cost-cutting drive earlier this year, including head office job cuts and a reduction in marketing.

In April private equity firm Apax pulled out of a takeover bid for Woolworths. It has earlier offered �837m.