Record breaking DSGi results smash expectations

Retail group's sales grow eight per cent during Christmas period
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Retail group's sales grow eight per cent during Christmas period

PC World and Currys owner DSG International achieved an eight per cent like-for-like sales growth over the Christmas period, thanks largely to electrical sales in the UK and Ireland.

The results – which cover the 12 weeks ending January 9th – significantly exceed analyst expectations of around a two or three per cent sales increase.

The firm claims it smashed previous records during the period, with Christmas shoppers buying a computer and a TV every two seconds, while all megastores enjoyed sales of over £1 million each in the first week of the sale.

The strong results were mainly attributed to the success of the Renewal and Transformation plan – the firm's strategy to update and adapt to the changing retail landscape. £50 million in cost savings have been made this financial year, which will go towards the £200 million overall target set across four years.

Despite the positive figures, DSGi remains cautious about trading through 2010, claiming it will be a tough year for the UK market in particular.

"Customer response to Christmas and the Sale has been even better than we expected with strong demand across all the categories and countries," said John Browett, chief executive of DSGi. "This performance reflects the benefits of the actions we are taking to revitalise the business as part of the Renewal & Transformation plan, with particularly pleasing performances in our Megastores and 2-in1 stores.

"This excellent performance across the Group is testament to the hard work and commitment of our colleagues throughout the business. Looking forward, we expect 2010 to be tough across Europe and notably in the UK given the economic environment. However, we expect to continue to benefit from the self help of our Renewal and Transformation plan and continue to build solid foundations for future growth.”