PC World sales slump as Dixons reports heavy losses

 

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By Barry Collins

Posted on 25 Jun 2009 at 09:38

The Dixons Stores Group has posted a huge loss for the second year running.

DSG - which owns the Currys and PC World brands - reported an annual pre-tax loss of £140.4m. That was a marginal improvement on last year's £181.4m loss.

However, there's little sign of encouragement in the company's financial report. Total sales in the company's computing business - which encompasses PC World, DSGi Business and the company's support service TechGuys - were down 14%.

The company blames excess stock of laptops after Christmas and weak consumer demand for the poor sales performance.

Overall company sales were down 9% in total, with Currys in particular bearing the brunt of strong price competition from internet stores, according to the company's report.

DSG also paints a reasonably gloomy picture of the future. "The difficult economic backdrop across Europe and subsequent impact on consumer spending, particularly on discretionary products, has been well publicised," the firm claims. "The Group expects these conditions to continue throughout the coming year in many of its markets."

Nevertheless, chief executive John Browett claims the company will be in a strong position once the economic gloom lifts. "We are providing better service in store, selling complete solutions, delivering at more convenient times and improving our technical and after-sales service," he claims. "We are well positioned to emerge from the recession with a compelling offer for customers."