Only a short time ago, industry experts were predicting that Dixons Retail, owner of both the Currys and PC World brands, could be going the same way as Woolworths, JJB Sports and Comet.
Tablet computers proved popular over the Christmas period
Consumers choosing to make expensive electronics purchases online led to a dramatic fall in the group’s sales, while dwindling household disposable incomes meant that few could really afford to splash out on the latest electronic luxuries.
Fortunately, it appears that Dixons Retail is significantly more robust than the City gave it credit for. Last week the company posted impressive results for the Christmas period, proving the business is back on track.
In the twelve weeks to the 5th of January, like for like sales increased by 7 per cent when compared to the same period last year. Furthermore when PC World and Currys stores in the UK and Ireland are considered, overall sales in this market rose by 8 per cent in the third quarter.
Chief executive Sebastien James puts the sharp rise in his company’s fortunes down to the immense demand for tablet computers over the Christmas season. It is estimated that around 8 million adults in the UK received a tablet computer of some sort as a Christmas present, with more expected to be sold in the after Christmas sales.
Mr James points out that the boom in tablet computers has benefited the business but not necessarily its profits.
He says; “Tablet sales were phenomenal across our markets, which was good to see but impacted overall headline margins somewhat.
“White goods were also strong, particularly in the UK.”
The strong performance over the Christmas trading period means that Dixons Retail is now well on its way to hitting forecast full year profits. Experts predicted group pre-tax profits would come in between £75 million and £85 million which seems achievable in the light of these results.
