DSGi (Currys, PC World) have enjoyed record sales over Christmas as customers flocked to snap up big-ticket electrical items.
The firm, formerly known as Dixons, saw UK like-for-like sales top City forecasts to rise by 8% in the 12 weeks to January 9, boosted by a revamp of its store format.
Chief executive John Browett has led efforts to combine Currys and PC World stores in ‘two-in-one’ outlets, as well as transforming existing branches into megastores.
Browett said the new formats had helped UK electricals become a particular highlight for the group, with many shoppers ‘trading up’ to premium products such as LED TVs.
And he predicted a further spike in TV sales in the run-up to this summer’s World Cup in South Africa, although he warned that most customers would simply be bringing their purchases forward.
Former high street stalwart Dixons, now transformed into DSG’s online division, enjoyed a 16% bump in sales.
But revenues from PC World gave some cause for concern, with UK sales down 3% as a boost from the launch of Microsoft’s Windows 7 was offset by ‘very weak’ sales to businesses amid the economic downturn.
Browett said PC World had ‘always struggled a little during recessions’, but predicted that the advent of the two-in-one stores would ‘dramatically expand PC World’s footprint’.
He issued a cautious outlook for consumer spending in 2010, but said the company did not believe that the UK will suffer a ‘double-dip’ recession.
The company said it was on course to hit the top end of analyst forecasts for full-year pretax profits of £60m to £90m.