A slowdown in consumer spending has hit trading at the Dixons Group, with UK sales falling over the past six months.
The owner of Curry’s and PC World said UK sales fell 2% in the 24 weeks ending 30 April while like for like sales dropped by the same amount.
Dixons said trading conditions were challenging but stressed that it expected to meet its full-year targets.
Hygena at Curry’s, a joint venture between Dixons and MFI, is to close with the potential loss of 400 jobs.
Price deflation
The concession kitchens retailer, which trades within 130 Curry’s stores, will close by September.
The company has launched a consultation process with staff and hopes to redeploy as many as possible.
Dixons said it was cautious about its prospects for the year ahead.
Retail sales have been suffering on the High Street as consumers tighten their belts, and the group has been forced to cut prices of its electrical goods – such as DVDs and flat screen TVs – as it faces increased competition from its rivals and supermarkets such as Asda and Tesco.
“Price deflation continues to be a factor, which, combined with cost inflation and a cautious UK consumer means that the environment will be very challenging,” said chief executive John Clare.
From The BBC