The whole market slumped as US investment bank Bear Stearns became the latest credit crunch victim and retailers were again hit hard as brokers fretted about the outlook for the consumer economy.

Only two store stocks ended the week up.

One was controversial tycoon Mike Ashley’s Sports Direct, which updated on trading. Sales for the 13 weeks to January 27 were£317 million, generating gross profit of£142 million. Full-year EBITDA will meet the£148 million consensus.

Sports Direct, which has had a stormy relationship with the City, has enjoyed a rehabilitation lately and is embarking on a Chinese venture. However, Pali International retained its sell advice and said: “Unless China takes off like a rocket, the rating looks too high relative to the rest of the sector.”

Tesco found itself unusually on the receiving end of a sell note. Goldman Sachs feared that the challenge of simultaneously rebuilding sales momentum and managing margin was not fully recognised by investors and there was scope for a further de-rating.

Goldman noted that Tesco has underperformed grocery sector sales growth for the past three months – its longest period of underperformance in six years.

Home Retail posted 1.9 per cent like-for-like growth at Argos for the eight weeks to March 1, but Homebase suffered a 5.3 per cent decline. Chief executive Terry Duddy was confident the group would meet forecasts.

Broker JP Morgan retained its neutral stance, but said: “We remain concerned by the competitive situation, with excess space growth threatening Argos and Homebase’s comparatively high gross margins.”

Debenhams notched up 1.2 per cent sales growth for the 26 weeks to March 1, when like-for-likes edged down 0.7 per cent. First-half gross margin is likely to be down about 20 basis points.

Panmure Gordon said Debenhams has been oversold and recommended buy with an 80p price target. Landsbanki advised reduce and said: “Despite more promising signs, we remain reticent about a group with such high operational and financial leverage in tough market conditions.”

Blacks Leisure disclosed accounting “discrepancies” at its Sandcity boardwear subsidiary. Pre-tax profits this year and next are likely to be£1 million lower than expected. Investec said: “This will impact sentiment far more than the quantum of implied downgrades as the market will worry about the potential for further mishaps.”

Aim-listed footwear retailer Stylo has sold Shellys for an undisclosed sum. Stylo chief Michael Ziff said the deal would allow focus on Stylo’s Barratts and Priceless chains and concessions.

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