As expected
It came as no great surprise, given the difficult Christmas non-food retail had and the unique challenges faced by DSGi, the owner of PC World and Currys in the UK, that it suffered a drop in group sales for the 12 week period ending 10th January 2009.
While total group sales were only down one percent, like for like sales, which don't include figures from newly opened stores, were down ten percent.
On the brighter side, in the last two weeks of that period - i.e. the sales - like for likes were up two percent, with UK computing and electrical performing relatively well. However this manifested itself in a fall in gross margins of 0.8 percent for the group. Like for like ecommerce sales were up six percent.
Regarding cost saving measures, DSGi saved a further £20 million in that period, bringing the total for the year to £95 million. Year-on-year stock levels were 16 percent lower. The group has a £400 million committed credit facility which, while it's yet to be tapped, is expected to be called upon this year.
Chief exec John Browett said: "The sales pattern through the period was as we anticipated with customers waiting for the post Christmas sales to purchase discretionary products, particularly televisions and laptops. Our Renewal and Transformation plans continue to progress well.
"Early results from the new store formats, which have now traded through peak, have continued to exceed our expectations and give us confidence that our plans are delivering for our customers. We expect 2009 to be challenging across most of our markets and are actively planning and managing the business for negative like for likes."
DSGi's shares were down 7.5 percent to 18.50p at time of writing.
