Waterstone's shows improved trend

The retailer suffered a disappointing Christmas season but with new leadership and a plan to increase non-book sales it has slowed the decline in like-for-like revenues to 4.8 per cent in the 16 weeks to April 24.

This compared with a drop of 8.5 per cent in the five weeks to January 2 and 6.2 per cent over the whole of its financial year.

HMV, which owns Waterstone's, said its overall group performance was in line with expectations, despite a 13.2 per cent drop in like-for-like sales at its UK and Ireland music retail business in the 16 week period.

It blamed the fall on strong comparatives against a year earlier, the impact of the snow disruption and its focus on managing margins.

At Waterstone's - which has struggled amid the recession and poor sales of usually lucrative big name autobiographies - the group aims to increase non-book sales from six per cent to 10 per cent in the next three years.

The plan will see more stationery and gifts on the bookseller's shelves as it looks to capitalise on its position as "the last remaining specialist bookseller on the high street" after the collapse of rival Borders late last year.

Waterstone's is under the new leadership of Dominic Myers after the group branded its Christmas performance as "unsatisfactory".

The HMV chain has also diversified as it positions itself to weather changes on the high street and in the music industry.

It hopes new products such as entertainment-related fashion will rise from nine per cent of sales to 21 per cent by 2013 under the plans.