Dixons update suggests gloom ahead

11 May 2005 – Hemel Hempstead (UK): Dixons has painted a drab outlook in its trading update on the back of falling prices and a slowdown in consumer spending.

Total group sales rose 7 per cent, but comp sales fell by 1 per cent. Trading at its British units The Link and PC World was particularly slow, with sales falling 8 per cent and 9 per cent respectively.

CEO John Clare said: "We remain cautious about the outlook for the consumer in coming months. It’s difficult to see how and when it’s going to get better."

Sales figures were more upbeat among the group’s international operations, rising 29 per cent in the second half.