Dixons summer sales flat

by Scott Bicheno on 2 September 2010, 10:34

Tags: DSG International (LON:DXNS)

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Treading water

DSGi, the owner of PC world and soon to be renamed Dixons Retail, has released a trading update for the 12 weeks ending 24 July, revealing total group like-for-like sales were up three percent from the same period a year ago.

While it's obviously good that sales have risen, like-for-like sales fell seven percent a year ago so, especially if you consider inflation of three percent, DSGi - sorry, Dixons - has at best trodden water this spring.

"This is an encouraging start to the year, especially given the challenging market conditions," said chief exec John Browett. "Our UK businesses performed particularly well, most notably with customers responding to our strong World Cup promotion and the excellent product ranges on offer.

"The store transformation programme is making rapid progress and continues to improve the shopping trip for customers. Our international businesses have also performed well against competitors in varied market conditions.

"We remain cautious about the economic outlook but we will continue to deliver on our Renewal and Transformation plan to make the business Better, Easier and Cheaper to run and deliver an unbeatable combination of Value, Choice and Service for customers."

Of course Dixons is not only having to deal with at best a weak market recovery, but aggressive competition from a major new player in electronics retailing - Best Buy. This will have diluted any benefit from World Cup related TV sales and as for its claimed iPad exclusivity, we're not convinced.

One move revealed in the trading statement is a retail partnership with Phones4U, with 50 in-store concessions to be open in time for Christmas. Given that Best Buy is a joint venture with Carphone Warehouse this is, in hindsight, an inevitable move by the two retailers on the basis that my enemy's enemy is my friend.

 



HEXUS Forums :: 4 Comments

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Aren't there only a few best buy stores (including one 300 meters away from my work) - so how can that be an excuse. Also I've found best buy to be relatively expensive compared to PCworld/Currys megastore (which is 300 meters the other way) so I can't believe people can be spending all that much in the few Best buy stores that exist.

Sounds just like an excuse to keep the shareholders happy.
TBH I think the internet and home delivery has taken its fair chunk out of the retail market as well. More people being savvy with their money when they do buy.
TBH I avoid the retail stores like the plague when I can, most I find are full of unknowledgable sales people tell other punders lies or there spin on the truth of the matter. Anyway it looks likely that Bestbuy is gunning for the parent company of Dixon, so you might see Bestbuy sooner than later lol
It's probably because they're not competitive - they've always been expensive in my eyes - although it has been a while since I last set foot in a Dixons
Flash477
- although it has been a while since I last set foot in a Dixons

Good luck finding a Dixons, they have shut all the high street branches down or changed them to Curry's Digital

Dixons group will fall flat on its face before admitting the problems they are having. The directors have no idea how to compete in todays market and will slowly but surely loose out to competition till they are buried.

Once the electrical power house of retail with shops everywhere and different shops, (Link, Dixons, Currys, PC World and that games store they had) now reduced to Curry and Pcworld, with them being merged into one store too.