LONDON (Bloomberg) — Signet Group Plc, the world's largest jewellery-store owner which is to redomicile in Bermuda, said a sales decline worsened in the second quarter as shoppers in the US and UK pared spending in the face of weakening housing markets and higher household bills.

Sales at stores open at least a year fell 4.5 percent in the 13 weeks ended August 2, the London-based company said today in a statement, more than the 2.5 percent drop in the previous three months. Revenue in the US, where Signet gets more than 70 percent of sales, fell 5.8 percent on that basis.

Higher food and fuel bills have led Britons and Americans to cut back on non-essential purchases. Signet, which owns about 1,400 Kay Jewelers and Jared shops in the US, in June scaled back plans to refurbish Ernest Jones stores in Britain and said growth in the country wouldn't continue. UK same-store sales fell 0.6 percent, after the first quarter's 5.3 percent gain.

The figures reflect "the continuing difficult trading environment in both the US and UK," chief executive officer Terry Burman said in the statement.

Signet's stock has dropped 22 percent this year, cutting the retailer's market value to £925 million ($1.8 billion).

The company last month said it plans to move its main stock listing to New York from London to recognise its rising investor base in the US. Signet will relocate to Bermuda from London to make the stock eligible for inclusion in US domestic stock indexes. Almost half the stock is now owned by US residents.

The drop in US same-store sales was more than the previous quarter's 4.7 percent decline. Total group revenue fell 2.4 percent to $768.6 million during the 13 weeks, a decline of 1.9 percent after stripping out currency fluctuations, Signet said.

First-quarter profit dropped 24 percent after US consumers bought fewer rings and necklaces, the retailer said in June.

The company has raised prices to offset increased gold and platinum costs. The impact of the price increases "continues to be encouraging" and Signet is on target to "at least maintain" last year's gross merchandising margin rate, a measure of profitability, Burman said in the statement.