DSG International, which operates in Ireland as Currys and PC World, said today it has gained market share and seen sales rise in recent weeks and believes it will emerge as the country's leading specialist electrical goods retailer once economic conditions pick up.
In an interim trading statement issued this morning, the group, which also owns the Dixons brand, said the economic enivronment remains "very challenging" in Ireland. However, it added that the business has taken a more aggressive trading position in recent weeks which has led to improved sales.
The group, which does not break out figures for Ireland said total sales in the UK & Ireland division were down 11 per cent to £1,625.7 million compared to £1,834.1 million a year earlier in the six-month period ending October 31st. Underlying operating loss was £16million as against a loss of £10.6 million in 2008.
DSG operates 31 stores in Ireland and over 1,200 across Europe.
"We are seeing the first positive signs in trading in Ireland but in terms of electricals as in the UK, it is all to play for in the Republic," Mark Webb, head of media relations at DSG International told
The Irish Times.
"In the markets we operate in there are some areas that are coming out of recession earlier than Ireland but there is nowhere and that includes Ireland, where we haven't seen some positive trends emerging, he added.
Mr Webb said that the company had engaged in a number of tactics to boost trade locally including heavy discounting on electrical goods so hat they match prices for similar products in Northern Ireland.
He also said the firm is continuing to roll out its store transformation programme which has seen a number of shops refitted and has benefitted from increased computer sales on the back of the launch of Microsoft's Windows 7 operating system.
Announcing its results for the six-month period ending October 31st, DSG International said overall sales at stores open at least a year fell 4 per cent in the 24 weeks to October 17th, but were up 1 per cent in the last eight weeks of the period and had continued on that trend at the start of the second half of its financial year.
DSG said it made a first-half underlying pretax loss of £17.6 million pounds, beating analysts' forecasts for a loss of between £24 million and £35 million and flat on last year.
The group has been cutting costs and stocks, selling off underperforming businesses and revamping stores.
Sales fell 1 per cent to £3.33 billion, but the gross profit margin was up 0.4 per cent.
The group said it had upgraded stores accounting for a third of sales volume in Britain in time for Christmas trading.
"While we are cautious about the outlook for 2010, we are well-positioned as we enter into peak trading," DSG chief executive John Browett said in a statement.
DSG shares slumped by up to 90 per cent last year on fears the firm might breach banking agreements, but the firm allayed those fears by raising £300 million in a share sale earlier this year and by renegotiating borrowing rules.
Over the last 12 months the stock has more than trebled in value, beating the general retailers index by over 100 per cent.
Additional reporting: Reuters
