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By | John Oates 23rd October 2008 08:13

Grim news at Dixons

Sales, margins and investment down

Dixons Store Group International (DSGi) updated the markets today on a miserable six months of trading.

Like-for-like sales fell 7 per cent for the 24 weeks ended 18 October 2008 and gross margins were down 0.7 per cent.

The company said: "Consumer confidence has significantly deteriorated across Europe, particularly in more discretionary areas, in recent weeks."

UK Computing sales were down 11 per cent, UK and Ireland Electricals were down 7 per cent, Nordics down 6 per cent and Southern Europe fell 10 per cent.

DSGi said it was slashing £30m in expenditure. The company said its store renewal programme was progressing well and early results were exceeding expectations.

The group expects 7 Currys and 4 stores to open before peak trading in the run up to Christmas. There should be 40 new format PC World stores open by mid-November and the UK's largest electrical store - a 55,000 square foot Currys Megastore - has opened near Birmingham.

10,000 shop staff have completed the first stage of their training scheme. The official statement is here as a pdf.

DSGi shares are down just over 80 per cent in a year, from 121p to 25.5p, but were up strongly today in a falling market.®

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