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The boss of Britain's biggest electricals retailer DSG International today dismissed talk of a bleak Christmas for the High Street as the PC World and Currys owner posted a smaller first-half loss than expected.
Chief executive John Browett said: “Christmas is going to be ok — not stellar, but better than many fear. You have to retain an element of caution, but we are really pleased with the recent sales trend.”
Sales at the group have started growing again, with like-for-likes up 1% in the eight weeks to mid-October, but this is against easier comparisons.
Overall, like-for-like sales fell 4% in the first half, while pre-tax losses were flat at £17.6 million. The city thought DSG would sink into the red by between £24 million and £35 million. The launch of Windows 7 has returned its computing arm to growth.
Browett said his turnaround plan has also helped, with gross profits in revamped stores up by “between 20% and 50%”.
He also shrugged off fears raised by an analyst at Morgan Stanley of empty shelves at its stores this Christmas: “Our warehouse is groaning.”
Browett added its recent advertisements on the tube for Dixons online had given a big boost to sales in London. The campaign, which advised shoppers to look at products in well-known high street stores before going to Dixons to get a better deal, left rivals fuming.
