Discount apparel retailer Peacock Group Plc has posted a 0.3 per cent drop in third quarter same-store sales.

The company, which operates more than 700 stores, saw same-store sales at its Peacocks outlets rise 1.3 per cent for the quarter, while comparable store sales at its Bonmarche chain slumped 3.2 per cent.

According to CEO Richard Kirk, poor merchandise appeal has been a significant factor in the company's sales downturn.

"There's been a lot of talk about the weather and other factors, but we believe the real problem has been the lack of casual fashion," he said.

"It's not just us, it's been felt across the sector."

Kirk said he was "confident" Peacock would meet its financial targets for the full fiscal year.