Dixons vows cost cuts as sales fall off

DIXONS Retail, owner of Currys and PC World, yesterday said the group’s annual sales had fallen but predicted that its £50m cuts programme would help to turn the business around.

Sales for the year to 30 April fell two per cent as the tough consumer environment took its toll. Like-for-like sales for the group’s UK and Ireland businesses fell three per cent for the year.

Dixons has made £50m of cuts this year across all parts of the business, but emphasised that no significant job cuts had been made. Chief executive John Browett said that the UK market was under pressure as customers reined in their spending . “It’s all about people feeling confident that they will have a job. By the end of the year and into next year things should improve,” he said.

“Our businesses have improved their market positions, particularly in the UK, Nordics, Greece and Italy.”

Underlying group pre-tax profit is expected to be approximately £85m, in line with previous guidance.