DSG turnaround on track as PC World owner gets set for Christmas

Shares in Britain's biggest electronics retailer DSG were up today after the firm reported smaller than expected losses and said it was a strong position going into the Christmas sales period.
DSG said it had narrowed underlying pre-tax losses marginally in the half-year to October 17, to £17.6million from the £17.7million seen a year earlier.
Same-store sales across the group rose 1 per cent in the last eight weeks of the first half - far better than the 6 per cent decline reported in September and the 9 per cent seen the previous financial year.

Turnaround: Sales at DSG stores rose one per cent in the last eight weeks of the first half

Better recent trading reduced the drop in DSG's interim like-for-like sales to 4 per cent.

Chief executive John Browett said he was confident going into the peak sales period.

'Our turnaround is on track and customers are responding well to the significant changes we are making,' he said.

 

DSG UK & Ireland reported widened underlying operating losses of £16million in the first six months, worse than the £10.6million seen a year ago.

However, the group has been driving a major revamp plan across the UK arm, including the refurbishment of 162 stores, with another 54 to go by the end of the year, as well as the launch of eleven new format megastores combining PC World and Curry's.

Browett said sales at refurbished stores were up between 20 and 50 per cent.

He added that the 9 per cent leap in like-for-like online sales at dixons.co.uk and Pixmania was partly attributable to the recent London Underground advertising campaign.