Dixons plunges to loss
And Woolies goes titsup
Dixons Store Group International posted a £30m loss for the last six months of trading.
The firm, which operates as PC World and Currys, said interim results for the 24 weeks ended 18 October showed sales fell seven per cent to £3.5bn and it made a pre-tax loss of £29.8m. Total loss after tax was £41m.
UK Computing sales fell 11 per cent compared to the same period of 2007 but margins were up. Only DSGI's ecommerce business, PIXmania and Dixons.co.uk, showed growth - up nine per cent.
Dixons said: "The trading environment remains tough and volatile. The Group is prepared for a recessionary environment and is consequently focused on cash generation."
The company will not pay a dividend this year and is cutting £30m from capital expenditure. The renewal programme continues and the firm said new format stores were performing well. DSGI shares are trading at just over 15p, down 88 per cent on the year.
In other retail news, Woolworths and MFI both went into administration today.
The real fear for companies like Dixons is the next six weeks - Christmas is a massive peak not just for computer retailers but for the whole High Street. ®