3rd Sep 2008 07:00
7.00am, Wednesday, 3 September 2008
DSG INTERNATIONAL PLC
INTERIM MANAGEMENT STATEMENT
DSG international plc, one of Europe's leading specialist electrical retailers, is today updating the market on trading for the 16 weeks ended 23 August 2008.
Total Group sales up 4% in sterling, down 2% in local currency, and like for like sales down 7%.
The trading environment remains challenging across Europe.
Gross margins across the Group were down 0.75% year on year.
£50million cost reduction programme delivered. Additional £25million cost savings targeted this year.
Intense activity around the renewal and transformation plan announced in May 2008:-
5 PC World stores refitted to new format - upgrading a further 25 PC World stores in time for Peak.
New format Currys and Currys.digital stores opening, with at least 10 stores reformatted in time for Peak.
20,000 colleagues will have completed the new customer service programme before Christmas.
2 further large format stores opened in the Nordics and one to trial in the UK shortly.
Italian transformation plan underway, early results encouraging.
|
16 Weeks ended 23 August 2008 |
||
|
Sales |
Total growth |
Like for like growth |
|
UK & Ireland Electricals |
(3)% |
(7)% |
|
UK Computing |
(9)% |
(12)% |
|
International |
||
|
Nordic |
+5% |
(4)% |
|
Southern Europe |
(1)% |
(12)% |
|
Central Europe |
(3)% |
n/a |
|
e-commerce (Dixons.co.uk & PIXmania) |
+6% |
+6% |
|
Total Group |
+4% |
(7)% |
John Browett, Chief Executive, commented:
"We have had a challenging start to the year, although we are trading against tough comparables. The economic backdrop in which the Group operates remains difficult across Europe, and we are managing costs and stock levels accordingly. We remain very cautious about the consumer outlook.
This is a period of intense activity for the Group as we action our three year renewal and transformation plan and focus on the customer. We are revamping ranges, retraining staff, and simplifying the business. Although we are only four months in, a lot of changes are already underway which will benefit both our customers and our shareholders."
Actions under the renewal and transformation plan
5 new format PC World stores have been opened. Based on initial success a further 25 stores will be refitted to this new format in time for Peak.
New format Currys and Currys.digital stores to be opened next week with 10 open for Peak.
Large format store in LØrenskog, Norway continues to trade strongly. 2 further large stores now open in Sweden.
New large format store of 50,000 ft2, based on the Group's successful overseas format, will be opened in the UK shortly.
Store colleagues in the UK are being trained in two key aspects, customer service and product knowledge. It is expected that nearly all 20,000 colleagues will go through the new customer service programme before Christmas.
In Italy good progress in resolving the issues is being made. The closure programme of uneconomic stores is underway. There are a number of trials in place and three PC City's within UniEuro stores have now opened.
The Group has delivered the £50 million cost reduction programme enabling investment to be made in the customer proposition.
In addition the Group expects to reduce costs across the whole business by at least a further £25 million this year.
- Ends -
For further information
David Lloyd-Seed, Group Communications Director, DSGi 01727 205065
Mark Webb, Head of Media Relations, DSGi 01727 205019
Information on DSG international plc is available at http://www.dsgiplc.com
Appendix
Prior year comparatives
The table below sets out the total sales and like for like sales for the 16 week period to 18 August 2007 under the revised reporting structure of the Group.
|
16 Weeks ended 18 August 2007 |
||
|
Sales |
Total growth |
Like for like growth |
|
UK & Ireland Electricals |
+4% |
+5% |
|
UK Computing |
+5% |
+6% |
|
International |
||
|
Nordic |
+9% |
+5% |
|
Southern Europe |
+13% |
0% |
|
Central Europe |
+25% |
n/a |
|
e-commerce (Dixons.co.uk & PIXmania) |
n/a |
+28% |
|
Total Group |
+11% |
+6% |
Please see the Notes above in the main body of this announcement.
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