Dixons are facing a grim new year as it was revealed that the Christmas season actually accelerated their decline in sales. Takings across Dixons stores and the Currys and PC World outlets run by the company fell by 5 per cent compared to the quarter before, reveal figures published today.

That fall follows a drop of 3 per cent chalked up in the previous three months, showing the decline at the tech retailers is accelerating. It's not a pretty picture, but the Dixons CEO John Browett said the store had outperformed competitors in Britain and that their gross margin remained flat year on year.

European shoppers have been cutting spending he said, and the market was "fragile":

"Consumer confidence in many of our markets remains fragile and we will maintain a cautious approach to the outlook for the year ahead."

In the past year American hardware sellers Best Buy has pulled out of the European market, and even retail big hitters such as Tescos reported a fall in profits.

Reuters reports that shares in Dixons have lost 55 per cent of their value over the last year. ®