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Dixons Retail reduces losses


Electricals specialist Dixons Retail has reported underlying pre-tax losses of £7.9 million for the 24 weeks to October 16th, which is almost a £10 million improvement on the same period last year.

The retailer cited this summer’s World Cup in South Africa as a major reason for its better financial performance, with sales of TVs in the UK and Ireland during the tournament helping the business gain market share.

Apple’s iPad launch during the period also helped boost trading activity at the company, which owns PC World and Currys.

Total and underlying group sales were essentially flat at £3.35 billion, up from £3.33 billion in 2009/10, while group like-for-like sales increased by one per cent.

Dixons, which recently changed its name from DSG International, also announced that its store transformation programme is on track, with 62 megastores now in operation.

Some 250 stores have been transformed in the UK, including 25 megastores, while 51 outlets have been changed in the Nordics.

Today’s statement revealed that the new format stores continue to deliver average gross profit uplifts of 20 per cent compared to the un-reformatted outlets.

John Browett, Dixons Retail CEO, commented: “We remain cautious on the economic outlook across many of our markets, as consumer confidence remains low.

“However, we have maintained our momentum in transforming the group and are performing ahead of the market.

“We have a proven store format that is delivering consistent gross profit uplifts across all our markets.

“We remain excited by the technology pipeline and the superb ranges and deals we will offer customers this Christmas.”

Published on Thursday 25 November by Editorial Assistant

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