Mobile phones category suffers
Dixons owner DSG International had a 'digital Christmas' after demand for high-tech gadgets boosted sales.

DSG, which also owns the PC World, Currys and The Link chains in the UK, said group like-for-like sales rose 2 per cent in the eight weeks to January 7.

Electricals drove the uplift over the period, with like-for-like sales up 4 per cent. However, sales at its computing and communications division dropped 4 per cent, affected by the 28 per cent fall at mobile phone chain The Link.

During the period, like-for-like sales at Currys were up 3 per cent like for like, and Dixons was up by 8 per cent. Sales at the UK computing division were up by 3 per cent on a like-for-like basis.

DSG chief executive John Clare said: 'I am pleased with the group's performance over our peak season, with encouraging trading in our UK electricals and computing businesses and in our overseas operations.

'This was very much a digital Christmas in our stores, with gift items such as games consoles, satellite navigation equipment, iPods and MP3 players, flat-panel televisions and laptops performing particularly well.'

In Ireland, like-for-like sales were up 17 per cent, by 4 per cent in Scandinavia and 9 per cent at the group's Italian chain UniEuro. The retailer's Greek arm experienced a 5 per cent fall in like-for-like sales.

Clare said he was cautious about the consumer outlook for the coming months, particularly in the UK, Italy and Greece, where underlying levels of consumer confidence remain low.

Following consumer concern about personal finance issues such as pensions, tax increases and energy costs, DSG's strategy is to 'retain a high focus on costs, margin protection, capital discipline and retail innovation'.

The group also unveiled interim results alongside the Christmas trading update.

Sales for the 28 weeks to November 12 were up 2 per cent to£3.5 billion, generating pre-tax profits of£106.1 million - down from£133.5 last time.

The retailer also announced that group human resources director and executive board member David Longbottom is to retire on March 31.

Other appointments were announced, all with immediate effect. Per Bjorgas, who has been appointed group managing director of the newly combined UK and international electricals division.

Nick Wilkinson has been appointed group managing director of the newly created New Businesses Division. In addition to business development, he will assume responsibility for group IT, including strategy development. Simon Turner is the new group sourcing strategy director.