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Dixons performs strongly in struggling retail sector

BusinessNews
, 17 Jan 2013News
Dixons performs strongly in struggling retail sector

Dixons is seemingly profiting from the misfortunes of its high street competitors as the electronics vendor reported an 8 per cent bump in sales over the 12 weeks leading to 5 January. The firm estimates that its full-year profit should fall between £75-£85 million.

Europe’s second-biggest electrical goods chain attributed its robust sales growth to increased demand for tablet devices, selling "well over 1 million" units over the holiday season.

"Tablet sales were phenomenal across our markets, which was good to see but which impacted overall headline margins somewhat," said company chief executive, Sebastian James.

"White goods were also strong, particularly in the UK," he added.

Another possible explanation for Dixons’ seasonal good fortunes may lie in the downfall of its sector rival, Comet. A lack of alternative vendors has probably resulted in improved custom, with Dixons already snapping up an additional 1,000 ex-Comet employees to aid with the Christmas rush – 500 of which are being kept on in a permanent capacity.

"We're experiencing growth. We took on well over 1,000 Comet staff and now have 500 permanently with us," James told Radio Four's Today Programme.

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