Electrical retailer Dixons said it saw strong sales ahead of Christmas but this was not enough to stop like-for-like sales slumping 5% in the last three months of 2011.
The firm said like-for-like sales in Southern Europe, which includes Greece and Italy, fell 10%, while in the UK and Ireland they fell 7%.
Only Northern Europe, showed any growth, with sales rising 3% in the 12 weeks to 7 January.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
However, it said it had seen a 23% jump in sales in the period from 4th to 14th January.
It added that gross margins across the group were flat year-on-year and stock levels were down 7% compared to the year before.
The company said it had seen strong demand for its technical support service Knowhow, a key plank in its strategy to tempt customers with expertise and therefore differentiate itself from online rivals.
Dixons also said it had seen strong growth in multichannel sales with 19% of group sales generated online.
"Consumer confidence in many of our markets remains fragile and we will maintain a cautious approach to the outlook for the year ahead," said chief executive John Browett.
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
