DSG faces challenging year as sales fall in core divisions

DSG INTERNATIONAL (DSGI) — the parent group of the Currys, PC World and Dixons electrical retail brands — said yesterday that its total group sales rose by 4% on a sterling basis, but fell by 2% in local currency over the four months (to the end of August) of its current financial year.

For the 16 weeks to August 23, DSG’s sales in its core Britain and Ireland division fell by 3% and by 7% on a like-for-like basis, compared to the same period last year.

“We’ve had a challenging start to the year, although we are trading against tough comparables. The economic backdrop in which the group operates remains difficult across Europe and we are managing costs and stock levels, accordingly. We remain very cautious about the consumer outlook,” said DSGI chief executive, John Browett.

While DSG International, which has operations across Britain, Ireland and much of continentalEurope, saw pre-tax profits for the 12 months fall to £205.3 million (€259.3m) from £295.1m the previous year, its Irish division saw sales rise by 5% over the same timeframe. Plans for the Irish operation include the opening of two more Currys stores, boosting job numbers by 40, and the evaluation of expansion opportunities for its PC World chain.

“This is a period of intense activity for the group as we act on our three-year renewal and transformation plan and focus on the customer. We are revamping ranges, retraining staff and simplifying the business. A lot of changes are already underway which will benefit our customers and shareholders,” Mr Browett added.