Dixons suffers at hands of bargain hunters

 

Gallery

By Barry Collins

Posted on 15 Jan 2009 at 09:29

Dixons has reported like-for-like sales were down 10% in the peak Christmas period, as bargain hunters held out for the January sales.

The Dixons Stores Group (DSGi) - the parent company of the Currys and PC World brands - also reported that UK computing sales were down 12% in the 12 week period that ended on 10 January.

However, the company claims that the fortnight running up to 10 January saw a much improved performance, with like-for-like sales up by 2% and "a better performance in UK computing and electricals."

"The sales pattern through the period was as we anticipated, with customers waiting for the post-Christmas sales to purchase discretionary products, particularly televisions and laptops," claims chief executive, John Browett.

DSG says it "remains focused on cash, cutting costs, managing margins and reducing stock." The company says it will make further cost savings of £20 million this year, bringing total cost reductions to £95 million.

The company has also attempted to reassure investors about its long-term future, claiming that "the Group is operating within its £400 million committed credit facility which is currently undrawn and available." However, DSGi concedes that some of that credit facility may be withdrawn.