PC slowdown hits Dixons sales
Down 1% year on year
The slowdown in desktop PC and mobile phone business caused sales in Dixons Group stores to fall by one per cent for the 18 weeks ended 1 September, compared with the period a year earlier.
Total sales for the period were up four per cent, thanks to video games, big screen TVs, and digital imaging.
Chairman Sir Stanley Kalms is going to make a trading statement at a company AGM today. He'll point out that: "Gross margins are slightly ahead of the previous year, despite continued price deflation and a competitive environment. At this point, it is too early to extrapolate these trends for the balance of the year.
"Whilst the economic outlook is uncertain, a series of significant new products are in the pipeline, our new concept Dixons and Currys stores are performing strongly and international expansion is progressing well."
Dixons is expanding is Sweden, Spain and Portugal. Its store redesigns are partly held responsible for the one per cent downturn in like for like sales. Reuters was told that 12 stores at a time are shut for a refit, which is impacting sales. ®