Dixons positive on increased Christmas sales

Dixons Group, the UK's largest electrical goods outlet, announced that UK sales for the eight weeks ended 10 January 2004 rose 7% in total and on a like-for-like basis were 4% up.

This was welcomed as positive news for the retailer which had suffered from two successive lean years during peak Christmas trade.

In a concerted effort to increase sales Dixons, which also owns Currys, PC World and The Link, had embarked on a strengthened sales and marketing drive for its high street retail chains in the run up to the vital seasonal sales period.

Dixons Group Chairman, Sir John Collins, said: “The Group achieved solid results in the first half year, with good sales and profit growth in a challenging retail market. Performance in the UK has improved throughout the period and our International businesses have continued to make good progress."

Among the most popular items leaving the stores were various digital technology items including digital cameras, plasma and LCD TVs, and DVD players. However, sales of games, VCRs and hi-fi systems were down.

On the Competition Commission’s 15-month long investigation into extended warranties, Sir John said that this had "continued to absorb a significant amount of management time". But he was "encouraged that the final recommendations reflect many of the Group’s longstanding policies and practices governing the sales of extended warranties, and that the Commission has concentrated on practical and proportionate measures to ensure the spread of best practice across the industry".

Sir John said that the Group's Christmas sales in the UK had been in line with expectations and that the International businesses had continued to perform well.

"Despite continuing uncertainty over the economic environment in Europe, the Group is well placed for a year of further progress,” he said.

Dixons Group reported first half-year pre-tax profits rose by 9% to £105.7 million, up from £97.1 million in the same period last year.

(SP)