The Arcadia Group home of some of the high streets most recognizable labels has announced that sales have fallen for the last seven weeks.

The company has revealed today that operating profit last year declined 6.1 percent as the stores are facing what Sir Philip Green has described as a ``more challenging time''.

Sales at Topshop, Topman and Miss Selfridge stores had an ``excellent year'' although the Green has aid that ``we're all going to have to work a bit harder'' and that the focus will be squarely on customer service as it is important for everybody to know their own business.

The billionaire has made moves with the aim to buy out debt’s following talks with Baugur Group Hf, the Icelandic owner of UK flagship stores Hamleys and Karen Millen.

It is estimated that Green will pay up to 2 million pounds for Baugur's debt, although it is too early to comment on the results of the early discussions.

It is not all doom and gloom for the retail industry during the current economic slowdown and it is the hardiness of companies such as Arcadia who had operating profit of 275.3 million pounds that mean that the UK could shake off this economic downturn far quicker than first anticipated.

Arcadia’s close rivals Marks & Spencer Group Plc who are the UK’s largest clothing retailer had also had store revenue fall by 6.1 percent during the period where consumer sentiment is near record lows, which proves just how tough the current market climate is.