World Cup helps DSGi score Q1 sales hike

DSGi's revenue for the 12 weeks to 24 July grew three per cent year on year

A boost in TV sales thanks to the World Cup and a monopoly on the nascent iPad market allowed retail giant DSG international (DSGi) to grow sales in its first fiscal quarter.

Group revenue for the 12 weeks to 24 July grew three per cent year on year in sterling, including a nine per cent boost in sales in the Nordics. UK and Ireland turnover was up two per cent and the firm's online business was flat. But sales in the rest of Europe declined two per cent annually. The retailer claimed Italy was a solid performer, but sales in Greece struggled.

DSGi, which plans to rebrand as Dixons Retail plc, claimed it grew UK market share in Q1, thanks in part to strong sales of TVs in the run-up to this summer's World Cup. The company's near stranglehold on the iPad for the first two months after its UK release also gave Q1 sales a shot in the arm, said DSGi.

Other first-quarter highlights picked out by the retailer included the reformatting of 43 UK stores as part of its ongoing transformation drive. Eight of the refurbished shops were megastores. DSGi also claims to be on course to have 50 in-store mobile outlets open before Christmas, as part of its partnership with Phones4U.

“This is an encouraging start to the year, especially given the challenging market conditions," said DSGi group chief executive John Browett. "The store transformation programme is making rapid progress and continues to improve the shopping trip for customers. Our international businesses have also performed well against competitors in varied market conditions.

"We remain cautious about the economic outlook but we will continue to deliver on our renewal and transformation plan.”