Britain’s biggest electrical retailer has warned of low consumer confidence during 2011, after seeing its sales figures and shares plunge. The company has said profits would be at the bottom end of market expectations.
An article over at Reuters is reporting like for like sales had fallen 11% in the last eleven weeks. Dixons Retail formerly DSG, also own retail stores Curry’s and PC World. They are forecasting that profits for the year will be about £85 million.
The company plan to cuts costs further, and could decide to leave the Spanish market. Chief executive John Browett said that their long term business plan is working. Other parts of the business like in Italy are continuing to grow strongly.
Dixons have said that despite the sales slide their market share is growing stronger. According to Seymour Pierce analyst Kate Calvert sales “have dropped off a cliff”. With the recent rise in VAT and fuel prices consumers are refraining from making big ticket purchases.
The recent release of the iPad 2 and Nintendo 3DS will help figures slightly, but after the initial rush spending is likely to be almost none existent again. Other high street names such as HMV and Kesa Electricals, which owns electrical retailer Comet, have also recently warned of falling sales.