FASHION retailer Arcadia has seen sales across its major high-street stores rise, despite a "highly competitive" trading environment.

The group is selling off a number of businesses to concentrate on key brands including Top Shop, Dorothy Perkins and Burtons.

It said like-for-like sales across the stores it was keeping increased by 7.1 per cent in the 17 weeks to June 23. It compared to growth of 5.5 per cent in the previous six months.

Total sales were up 0.8 per cent but the group's sales space has shrunk by 11.8 per cent under a recovery programme put in place by its former management.

Arcadia's chief executive Stuart Rose said all the group's core brands had improved their performance. Plans to sell off Warehouse, Principles, Hawkshead and Racing Green to a management buy-out team were "on schedule".