Dixons encouraged by sales growth
Core chain sees signs of recovery
Dixons has seen an encouraging start to its financial year, with group sales up by 8 per cent in the 18 weeks to September 4, and by 5 per cent on a like-for-like basis.
In the UK, sales for the electricals retailer grew by 9 per cent in total and by 7 per cent like-for-like. The Currys and PC World chains both performed strongly, wihile the core Dixons chain, which has seen the number of stores reduced, “is showing some encouraging signs of recovery from last year’s levels”, said chief executive John Clare.
In local currencies, the group’s international business saw sales growth of 13 per cent, although like-for-like sales were flat as new store openings, particularly in developing markets, hit existing stores. In sterling, international sales grew by 7 per cent.
Clare said: “Gross margins across the group were 0.4 percentage points lower than last year, largely as a result of a proportionately higher level of business to business sales, and lower credit commissions in the mix.
“While it is too early to extrapolate these trends for the balance of the year, the group is well placed for a year of progress.”
