Dixons UK like-for-likes flat
Sales ahead of forecasts in challenging electricals market
September 10 2003
Dixons has seen flat like-for-like sales in its core UK business across the first 18 weeks of its financial year.
The UK’s biggest electricals retailer said its performance was in line with expectations against strong comparatives a year ago. The performance was ahead of City expectations, with analysts having been predicting a like-for-like decline in Dixons’ UK sales.
However, the business has undoubtedly seen fiercer competition from supermarket operators including Tesco and Asda, which have been growing non-food sales. The extended hot weather across the UK for much of the summer has also depressed electricals sales overall.
However, the weather also boosted demand for items such as fridges and electric fans, which gave Dixons some extra sales. Laptop PCs and digital cameras have also sold well.
In the 18 weeks to September 6, Dixons’ total group retail sales, including last year’s Italian acquistion UniEuro for the first time, were 19 per cent ahead of the same period last year, growing 1 per cent on a like-for-like basis. International like-for-likes grew by 3 per cent.
Dixons chairman Sir John Collins said: “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.”
