Dixons sales fall amid tough market conditions
Dixons, Europes second biggest electricals retailer, has reported a 7% fall in like-for-like sales in the 12 weeks to 23 July. This includes a 9% decline in the UK.
The group said the UK performance was in line with expectations as in the same period last year the group benefited from a surge in sales of televisions ahead of the World Cup and from the launch of the Apple iPad.
The group’s Nordic businesses performed well seeing a 5% rise in sales and an increase in market share, but sales in other countries were flat.
Dixons said 14% of group sales were online as it grew its multichannel sales offering.
Gross margins across the group were down 1% year on year.
Dixons said its capital expenditure will be approximately £100 million this year as it focuses on its store refit programme. 375 stores have now been refurbished across the group.
John Browett, Dixon’s group chief executive, commented: “This performance was in line with our expectations when compared with particularly strong trading last year as a result of the World Cup and launch of the iPad. While underlying market conditions have remained challenging this year we have continued to trade ahead of our markets as customers respond to our improving customer offer. I am particularly pleased with the significant and ongoing improvements we have seen in customer satisfaction measures in the UK which demonstrate the success of our Renewal & Transformation plan, as well as our continued strong trading in the Nordics. We remain on track for full year expectations.”
While we remain cautious about the economic outlook we will continue to deliver on our Renewal and Transformation plan and make the business better, easier and cheaper to run and deliver an unbeatable combination of Value, Choice and Service for customers.”
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