The owner of Sports Direct and Flannels has said sales have fallen at its UK retail businesses amid heavy discounting by rivals and “very subdued” consumer confidence.

Frasers, which is controlled by former Newcastle United owner Mike Ashley, said sales at its UK sports division were down 5.8% in the six months to 26 October to £1.3bn despite growth at the main Sports Direct chain because of “planned decline” at its Game outlets and the Studio Retail online arm.

Michael Murray, the chief executive of Frasers Group , which also owns House of Fraser department stores, Jack Wills and dozens of other brands and a number of shopping centres, said “market conditions are tough” and “consumer confidence is very subdued”.

The company said it remained cautious about the second half of its finan

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