Dixons denies stores closing

Electrical retailer Dixons today denied reports that up to half of its 329 stores are likely to be closed during a restructuring.

The group, whose outlets include Dixons, Currys, The Link and PC World, dismissed as “pure speculation” reports that the stores would be shut to cut costs and relocated in a bid to boost sales.

The UK-based retailer is currently piloting a larger store format, known as Dixons XL, in Cardiff, Swansea, Hull and Birmingham.

The new stores, whose locations range from the high street to out-of-town retail parks, are cheaper because being larger they have a lower rental per square foot, which gives the group a different profitability margin.

A spokesman said: “It is too early for us to reach any conclusions about that format.”

But he added that some of the early signs for the new XL stores were “encouraging”.

If the new-style stores are successful, it is thought the group will look at shifting its existing outlets to the new format.

Dixons is expected to report a disappointing Christmas trading period when it unveils interim results on Wednesday.

Like-for-like sales during the festive season are expected to be flat, despite products such as digital cameras and radios and DVD players expected to have sold well.

Overall analysts are expecting a 9% rise in interim pre-tax profits to £105.5m (€152.1m) for the 28 months to November 15, with same-store sales in the UK likely to be flat.