Costa coffee has reported a 2% fall in sales compared to 2017 for the first quarter of 2018, according to BBC News.
The coffee chain said total UK sales were up 5.2% following the opening of new stores, but like-for-like sales were down.
Parent group Whitbread pledged in April to demerge Costa from the group. Early morning trading in London saw the company shares rise 1% to £39.36.
Whitbread head Alison Brittain said: “Our stores remain highly profitable and deliver an excellent return on capital.”
A statement from the company said: “The UK like-for-like sales decline resulted principally from footfall weakness in traditional shopping locations, whereas travel locations continued to show good growth.”
Recent months have seen a number of well-known UK chains struggle to cope with challenging economic circumstances and online competition. Brands including Marks & Spencer, House of Fraser, Mothercare, New Look, Byron, Jamie’s Italian and Prezzo have announced plans to close stores.
Companies Maplin, Poundworld and Toys R Us have entered administration.