Department store Debenhams is expected to post stagnant results on Wednesday as it struggles to keep up with its high street competitors.
The company predicts that like-for-likes will remain flat for the third quarter as a result of pressures from falling shopping centre footfall and clothing price deflation.
James Collins, analyst from Stifel said that the group could see sales fall as it takes a hit from "fire sales" at BHS.
"March and April were difficult for the clothing market and while the weather was more supportive in May, industry data suggest ongoing sales declines and significant deflation.
"Footfall data also suggest weak shopping centre and high street trends.
"Hence, against a relatively good third quarter last year, we expect Debenhams to report a group like-for-like decline of -1% to -2%."
The update follows last month's announcement that Amazon Fashion Boss Sergio Bucher will join Debenhams as its new chief executive. Bucher faces the task of mending the retailer's performance during a challenging retail climate.
Debenhams reported strong half-year results in April with a 5.5% rise in group pre-tax profits to £93.8m to February 27th.
