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Weak demand for electronics has been blamed for another fall in sales at retailer Argos.

For the eight weeks to 25 February, the company's owner, ³ÉÈË¿ìÊÖ Retail Group (HRG), said sales fell 7.7% to £480m.

Argos, which brings in 80% of HRG's overall sales, shut 12 stores during the period, reducing its total number of shops to 748. Internet sales now account for 40% of revenue.

HRG also owns the ³ÉÈË¿ìÊÖbase chain. Its sales declined 6.2% to £195m.

Catalogue sales specialist Argos has been hit by the squeeze from rising food and energy prices on its lower-income customers, who have been cutting back on electronics purchases in particular.

Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said: "It is difficult to envisage an end to the company's current woes, as economic hardship intensifies and the competition shows no sign of slowing."