Dixons sales dive 4% in festive period

Dixons Group, the electrical retailer that owns the PC World and Currys brands, reported like-for-like sales fell 4% in the eight weeks to 8 January and issued a profits warning.

Curry's and PC World: 2010 Star Wars push
Curry's and PC World: 2010 Star Wars push

For the whole group, like-for-like sales declined by 2% compared to the same period last year, with greater losses offset by an 11% rise in turnover in the group's Nordic businesses.

Full-year profits are forecast to be in the £100m to £110m range, down from £112m last year, but an improvement on a £123m loss the year before.

Dixons Group claims the poor weather will have dampened UK Christmas sales by some 2%.

The group is nearing the end of a three-year overhaul of its brand positioning and store offering and will roll out new shop designs this year in its Currys and PC World stores, many of which will be co-branded. Smaller stores will close.

John Browett, chief executive at Dixons group, said: "We continue to be pleased with the performance of the reformatted stores which trade ahead of the market.

"Peak trading has been solid in a tough market. The adverse weather conditions reduced footfall in the run-up to Christmas Day. We saw strong trade in the post-Christmas sale as customers were keen to take advantage of our great deals on 3D TVs, Apple products, tablets and white goods ahead of the rise in VAT in the UK.

"We remain cautious about the economic outlook across our markets, but we will continue to deliver on our renewal and transformation plan as we make the business better, easier and cheaper to run and deliver an unbeatable combination of value, choice and service for customers."

The group's ecommerce division saw sales slide by 7%, but higher value products were picked up by multichannel retailing, which grew by 8%.

The group grew by 3% in the 12 weeks to 24 July 2010 and , with one in three big-screen models 3D-ready.

Currys used robot characters C-3PO and R2-D2 for its Christmas campaign, created by M&C Saatchi. David Bailey shot the outdoor campaign.

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