Fashion retailer French Connection Group plc has reported a loss for the first half of the fiscal year as demand in its core British market remained weak.

The British retailer, whose eponymous high street clothing chain accounts for over 90 per cent of its sales, said it completed a review of its retail business and have implemented several initiatives, including disposal of loss-making stores.

These initiatives will take up to two years before they fully benefit French Connection’s results, the company said.

It reported a loss before tax of £6.3 million (€7.84 million) for the six months to July 31, compared with a profit before tax of $700,000 a year earlier.

Revenue fell about seven per cent to £96 million. Like-for-like sales at its UK/Europe retail division, which accounts for half of the company’s revenue, fell 9.5 per cent.

“The last six months have continued to be very difficult for French Connection’s UK/Europe retail business,” chief executive Stephen Marks said in a statement.

Many British retailers are finding the going tough as consumers cut back spending in the face of inflation, employment fears and government austerity measures.

French Connection’s shares, which have fallen 38 per cent this year, closed at 25 pence on the London Stock Exchange on Tuesday.