Bosses at DSG International - the electrical retailers with companies including Dixons, Currys and PC World - are in need of some festive cheer after reporting that the run-up to the Christmas period remains tough.

Like-for-like sales for the whole group in the 28 weeks to November 12 were down 3 per cent with its UK outlets continuing to under-perform.

The sale of household appliances has been "particularly weak in recent months" although the sale of personal electronics "remains satisfactory" at Dixons.

Like-for-like sales of computing and communications goods were down 12 per cent as the cost of hardware continues to fall. The only bright spot appear to be that DSG' international operations continued to do well.

"Trading conditions in the UK remain difficult," said chief exec John Clare. "There has been no further significant deterioration in our overall trading in the UK during the period, but equally, no clear indication yet of any recovery in our markets. Our priorities remain on margin, cost and capital management."®

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