The performance of DSG - the high-street electricals retailer behind Dixons, Currys and PC World - was boosted over the festive period thanks to punters splashing out on a "digital Christmas".

During the busy festive period total group sales were up five per cent, while in the UK, total sales were up three per cent, boosted by big sellers such as games consoles, satellite navigation gear, iPODs, MP3 players, flat-pannel TVs and laptops.

But while the retailer saw a spike during this normally busy time, the past six months have been difficult.

While total sales were up three per cent at £3.5bn, pre-tax profits fell from £133.5m to £106m.

And although there appears to be a steady pipeline of new consumer technology products due in shops during 2006, Clare is concerned whether consumers will be prepared to part with their cash.

"While the peak was encouraging, Christmas is a very different trading period to the rest of the year," said Clare.

"We remain cautious about the consumer outlook for the coming months, particularly in the UK, Italy and Greece, where underlying levels of consumer confidence remain low. Concerns about personal finance issues - such as pensions, tax increases and energy costs - remain on the UK consumer's agenda." ®

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