DSG Reports Poor Christmas Sales

Retailing giant DSG International has today warned shareholders to expect lower than predicted profits over the course of the year, as a result of a dramatic slowdown in sales throughout the last few weeks over the Christmas and early sale periods.

The retailing group which owns electrical chains Currys and PC World has today issued a profit warning after experiencing a strong downturn over the Christmas period, in similar circumstances to many other high street retailers over the last quarter following the effects of rising interest rates and changes within the credit markets.

Sales across the board were down by 1% to the end of December, whilst sales of computer products were down by over 10% on the period as a result of less affordable credit and rising interest rates which have dampened consumer spending generally over the last few months.

The fall in sales was driven largely by a lack of demand for laptops and weak returns on advertising campaigns designed to promote larger electrical goods like flat screen TVs, with the group reporting that profits could be hit by up to £50 million as a result of the slowdown.

Whilst the reports were largely bad news for the group, it did report some successes in its online retailing businesses, with sales at FotoVista and Dixons.co.uk up over 30% collectively over the period, reflecting a change in consumer shopping habits as compared to the same period last year.

“Overall trading for this important period, in which over half our annual profits are usually generated, has been disappointing, particularly in the UK, Italy and Spain,” said a spokesperson from the company today.

It remains to be seen whether 2008 will see a recovery from the credit woes that have troubled retailers across the world in light of this summer’s credit fallout.

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