Shoe retailer Stylo, whose banners include Barratts and PriceLess, on Friday posted an interim pre-tax loss of £3.4 million despite a 10.5 per cent jump in same-store sales.

The Bradford-based operator blamed the loss on the costs of its extensive store revamp programme, the minimum wage and higher rents on 120 of its shops. Turnover rose seven per cent year-on-year to £95.3m.

Stylo chairman and CEO, Michael Ziff, said the firm enjoyed a good August due to strong back-to-school sales and he expects a solid second half as it reaps the rewards of an extended ranges.

"By next Christmas two thirds of sales will be from shops with the new image," he said. "We are not necessarily focusing on the biggest shops, we are targeting areas where we can get results.

He added: "We are getting a higher average price because people are prepared to pay more in the new environment."