DSG to expand store presence despite sales dip

DSG IRELAND — the holding company for the Curry’s, PC World and Dixon’s electrical goods retail brands here — is still aiming to expand its store presence, despite seeing sales decline significantly over the last three months.

A trading update from DSG International yesterday showed that electrical goods sales were down by 12% over the 12 weeks to January 10 in its Britain and Ireland division. Sales of computer goods across PC World shops were down by 13% on a year-on-year basis.

“The sales pattern through the period was as we anticipated, with customers waiting for the post-Christmas sales to purchase discretionary products, particularly televisions and laptop computers,” DSG International chief executive John Browett said.

Declan Ronayne — managing director of DSGs Irish operations — said that while the challenging trading conditions were felt here too, the Irish arm was “still expansion minded”. He said that the latest Curry’s store to open here — in Carlow, last month — was currently performing well.

Mr Ronayne did, however, admit that Ireland is unlikely to avoid the group’s cost reduction programme, which will see it make savings of £95 million (€105.8m) by the end of April.

DSG International is looking to cut costs by around £20m more before the conclusion of its fiscal year at the end of April. It is not known whether any permanent employees will lose their jobs, but temporary staff taken on for the Christmas period will not be retained.

Mr Ronayne also said that the company was looking to reduce opening hours in a number of its shops, which would significantly cut down on distribution costs.

Elsewhere, in a busy day for retailers, Home Retail Group, which owns the Argos and Homebase chains, reported a 10.2% fall in sales for the 18 weeks to the beginning of January at Homebase and a 7.5% sales decline, over the same period at Argos.

Primark — which trades in Ireland under the Penney’s name — bucked the trend however, showing an 18% year-on-year sales rise for the 16 weeks to the first week in January.