Currys and PC World sales drop

Thursday, 23 October 2008 04:00

Currys and PC World owner DSG International has reported a seven per cent fall in like-for-like sales and warned trading conditions could worsen further.

As a result of the slowdown, DSG is cutting £30 million from its investment plans.

John Browett, DSG chief executive, said: "The trading environment continues to be tough."

He told reporters: "We are preparing for a poor Christmas" but stated performance would not be "completely disastrous either".

In the UK the firm saw a five per cent drop in sales and a seven per cent drop in like-for-like sales.

At 14:54 BST the DSG share price was up 6.38 per cent.

The results came out as retail sales data from the Office of National Statistics (ONS) revealed further slowdown on the High Street.

Stephen Robertson, director general of the British Retail Consortium, said: "The official figures rightly confirm overall sales growth is slowing and conditions toughening for customers and retailers as the crucial run-up to Christmas begins.

"With almost all sales growth confined to food many non-food retailers are under huge pressure. Not only are sales hard to come by but deep and widespread discounting is putting margins under tremendous pressure as costs rise."

• Tags:
• investment advice
,
• news