FORMER Railtrack boss Gerald Corbett has pledged to revive Woolworths after revealing widening losses and low sales at the high street chain.

Mr Corbett, who joined the retailer as chairman in March, said progress had been made since its demerger from former parent Kingfisher last month.

But he said the financial performance in the first half was disappointing and Christmas would be crucial to stabilising the core business.

In the six months to August 4, Woolworths reported pre-tax losses of £62.8m, compared to a loss of £40.1m in the same period last year.

Total sales rose 7.9 per cent to £983.8m, but like-for-like growth was only 1.9 per cent, and Mr Corbett said like-for-like sales had been flat in recent weeks.

Woolworths floated back on the stock market at the end of August, following its demerger from Kingfisher.

Mr Corbett said the business had suffered from holding too much stock.

While £69m worth of destocking had taken place in the first half, the overhang would affect the second-half through higher distribution costs and product mark-downs in stores, he said.

"Our priorities in the second half of this year are to continue to destock successfully and return to cash generation, thereby reducing debt significantly," said Mr Corbett.

"With the demerger complete, we can now concentrate on rebuilding this great business, and securing the returns for shareholders that our strong brand and powerful market position justify."

The main product ranges sold across Woolworths' 800 stores were being revitalised and a value pricing trial had begun in Scotland.

Shareholders will receive an interim dividend of 0.3p per share.