HAMPSHIRE based retail giant B&Q has reported a fall in sales after seeing consumer demand weaken and trading conditions become more competitive.

The DIY chain, which employs 1,600 at its Chandler's Ford headquarters, posted a 1.2 per cent decline in like-for-like sales for the 13 weeks to January 29.

Sales of flooring, lighting and wall decorations were worst hit as ranges in these areas awaited a review this year. Demand in the kitchen and bathroom departments edged ahead of a strong quarter a year earlier while price cuts and new ranges helped stimulate sales of paint and building materials.

Chief executive Gerry Murphy said: "The environment in the UK is tough and has been getting tougher for a while. The evidence is not just from our numbers but the British Retail Consortium data has been softening for two years.

"There's more competition right across the board in a softer market where customers are spending more cannily."

The weaker winter performance left B&Q sales for the year to the end of January up by 1.3 per cent on a like-for-like basis. The total figure of £4.09 billion was 4.9 per cent higher when new stores were included.

The trading update reflected official retail figures which showed sales rose by 0.3 per cent in the three months between October and December against the previous quarter - the lowest rate of growth for six years.

B&Q owner Kingfisher said the DIY giant's weaker performance had been offset by sales growth in France.