Electronics retail firm reports trading growth

6 Sep 2006

DSG International, the parent group of Dixons, Currys and PC World in Ireland, has reported sales growth is up in Ireland in the first 16 weeks of this financial year compared with the same period last year.

In a trading statement this morning the company reported a total growth of 28pc growth in the 16 weeks ended 19 August. This compares with a growth rate of 20pc for the same period last year.

DSG group chief executive John Clare said that the entire group performed well in most markets during the first 16 weeks of its new financial year.

“Flat-panel television sales across Europe were boosted by the World Cup and, in the weeks since, have continued to grow year on year. Laptops also continued to perform well. The white goods market in the UK has started to show some signs of improvement,” Clare said.

Earlier this year Dixons moved to become a pure online retailer except in the Irish market where it retains a network of physical stores. “Dixons’ move to become a pure online retailer has started well and the rebranded Currys.digital stores are performing in line with our expectations,” Clare said.

Clare revealed he was encouraged by this promising start to the new financial year for the company. “However, this first quarter is a relatively less significant one for the group. The important peak trading period is still ahead of us and it is much too early to extrapolate trends for the year as a whole.

“We are confident that our focus on serving the needs of our customers, in addition to cost management, margin protection, capital discipline and retail innovation position us well for further growth,” Clare said.

The company’s Irish operation in June reported a 30pc increase in sales of €151.1m for the previous financial year. The company attributed much of its growth to ‘World Cup effect’ with strong sales of flat-panel TVs, computer hardware and accessories and MP3 players.

In June, DSG announced that it would be creating 200 extra jobs across all its Irish stores with the bulk of the positions to be in place by Christmas.

By John Kennedy