ELECTRICAL RETAILER DSG INTERNATIONAL REPORTS LOW SALES

DSG International which also owns the Dixons.co.uk online brand, said first-half group sales fell one per cent to £3.3billion in the 24 weeks to October 17, while sales at stores that had been open at least a year slipped four per cent.

PC World sales dipped 12 per cent as small-business customers cut costs and people delayed buying computers until Microsoft launched its Windows 7 operating system in October. Chief executive John Browett said pre-Christmas trading was back to normal after last year, when shoppers put off gift-buying until the last minute. Group sales rose by one per cent in the last eight weeks of the half.

DSG is hoping for festive sales of computers, TVs and food processors as people cook at home instead of eating out, although it expects a difficult Christmas, while Browett believes it will be “tough in 2010”.

The group traditionally makes a loss in the first half and the deficit this time was £17.6million against £17.7million a year earlier. International sales fell 11 per cent to £586million.