Competitive Package
UK - London

UK sales at lowest level for decade
No end in sight to spending downturn warns Dixons boss
by Samantha Loveday
The sales crisis on the High Streetappears to be deepening, with morewoe for retailers during April as salesfell to their lowest level in ten years,according to the British RetailConsortium.
Like-for-like sales slipped by 4.7 percent against the same month in 2004,mainly due to Easter falling a monthearlier this year.
However, BRC director generalKevin Hawkins told BBC's Radio 4Today, that the figure is worse thananyone expected. Trade worsened inmost categories on the High Street,especially in the case of occasionaland non-essential purchases. Whiteelectrical goods and furniture alsoslowed.
Indeed, Dixons Group experienced asales fall over the past six months,with UK sales falling two per cent inthe 24 weeks ending April 30th. Likefor-like sales also dipped by the sameamount. DSG has been forced to cutthe prices of electrical goods likeDVDs and flat screen TVs amongsttough competition from the likes ofAsda, Tesco and Internet-basedretailers.
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PC World and The Link werethe worst hit areas of the business,falling eight and nine per centrespectively over the 24-week period.The core Dixons chain fared better,with like-for-like UK sales up five percent over the same period.
The company is still expecting tomeet its full-year targets, but chiefexecutive John Clare warned that thedownturn is nowhere near over yet forretail. "I can't see where any goodnews will come from. The speed withwhich this has hit the retail sector andthe fact that there is no end in sightcould all point to this being worsethan the downturn we experienced inthe Nineties. A lot depends on howlong it will last."