Department store chain Bentalls announced that tough management practices were helping it to stem losses.

In the six months ended July 29, the group made a pre-tax loss of £1.9 million, compared with £3.3 million for the corresponding period last year.

Announcing its interim results at the same time as revealing it had sold off its Bristol store to rival House of Fraser for around £16 million, chairman Edward Bentall said he was pleased by the progress made in the first half of 2000.

The group had had a major presence in Worthing's shopping centre for many years.

Mr Bentall said a strategy of reducing stock, if necessary by slashing prices, had succeeded in making the organisation leaner and more efficient.

Stock levels fell 11.3 per cent in the trading period compared with the same time in 1999, albeit boosted by an increase from 22 per cent to 25.7 per cent in the proportion of goods sold at reduced prices.

As a result, gross profit margins fell slightly, from 33.5 per cent to 33 per cent, but this was counterbalanced by a 3.2 per cent rise in sales, to £54.8 million from £53.1 million.

Moving into the opening weeks of the second half year, Mr Bentall said the fuel crisis had hit sales for around a fortnight.