Shares in HMV took a dive in early trading as the group announced a drop in like-for-like sales for the five weeks to 31 December 2011.

The floundering retailer insisted it remained confident about 'future prospects', despite seeing shares fall nearly 7 per cent, or by 0.20p, to 2.8p at 10.14am.

Like-for-like group sales declined 8.1 per cent for the five weeks to 31 December and by 9.7 per cent for the nine weeks to the end of 2011.

However, the group, which operates 252 UK stores, saw like-for-like technology sales rise 51 per cent in the 144 outlets refitted with an extended technology range.

HMV said it planned to shift focus to technology products and is set to refit more stores this year. On 19 December, it announced a strategic review of its live music division that could lead to its sale.

In a bid to reassure investors, HMV confirmed that the strategic review was making good progress and insisted that discussions with the group's banks remained 'constructive and positive'.

CEO Simon Fox (pictured) commented, 'The continuing actions to focus the business and to expand our technology offering are beginning to show through. 

'We are seeing a combination of a slowing of the decline in music and film, and acceleration in the growth of technology.'

He continued, 'Undoubtedly trading conditions and the consumer environment remain challenging, but we remain confident in HMV's future prospects.'