Clothing and furnishings company Laura Ashley was also deep in the red, with shares down 13% as news of a 4.2% drop in recent UK like-for-like sales overshadowed a near-doubling in full-year profits. The flurry of grim updates from retailers has sparked fears for the sector over the year ahead as consumers rein in spending in the face of Government cuts, tax hikes and soaring inflation. Howard Archer, chief economist at IHS Global Insight, said: "Consumer confidence remains extremely weak, thereby maintaining concern that consumers will be very cautious in their spending over the coming months in the face of serious headwinds." Official figures earlier this week showed household disposable income fell for the first time in 30 years at the end of 2010 after wages failed to keep pace with inflation. Dixons shares fell another 7% after plunging 18% on Wednesday following news that sales declines in the UK and Ireland worsened to 11% since Christmas.