Trading Statement

Tuesday, 17 January 2012

DIXONS RETAIL PLC

Solid performance in tough markets

Dixons Retail plc, one of Europe's leading specialist electrical retailing and services companies, is today updating the market on trading for the 12 weeks ended 7th January 2012.

·; Total underlying Group sales down 3% in sterling and like for like sales down 5%.

·; Strong growth in multichannel sales with 19% of Group sales generated online.

·; UK & Ireland trading ahead of competitors:

·; Strong period ahead of Christmas;

·; Sale period after Christmas was distorted by VAT rise last year. Like for like sales in the 2 weeks from 1st to 14th January were up 2% and up 23% in the period from 4th to 14th January;

·; Strong sales of in store services under KNOWHOW.

·; Nordic operations continue to consolidate share gains with less gross margin investment.

·; Operations in Italy and Greece impacted by weak economic environments.

·; Gross margins across the Group were flat year on year.

·; Stock turn increasing with stock levels down 7% year on year.

John Browett, Group Chief Executive, commented:

"This is a solid performance against a challenging backdrop. Our service-led business model continues to win over customers in all our key markets. We have made significant progress with KNOWHOW and see further opportunities to develop our services offering. Our multi-channel offer is going from strength to strength with customers appreciating the benefits of our Reserve & Collect model.

Consumer confidence in many of our markets remains fragile and we will maintain a cautious approach to the outlook for the year ahead. We have set our business accordingly and will continue with our self-help strategy to improve the offer for customers. Our Renewal and Transformation plan is continuing to make the business better, easier and cheaper to run and delivering an unbeatable combination of Value, Choice and Service for customers."

- Ends -

For further information

Investors & Analysts Conference Call

John Browett and Humphrey Singer will host a conference call for Investors and Analysts at 8.30am:

Dial in number: +44 (0) 1452 555 566

Conference call ID 42329152

A replay facility will be available after the call using the following details:

Dial in number: +44 (0) 1452 55 00 00

Conference call ID 42329152#

Dixons Retail plc will issue a trading statement for the 52 Weeks to 28 April 2012 on 10 May 2012.

Information on Dixons Retail plc is available at http://www.dixonsretail.com

NOTES:

1) Underlying sales are defined as excluding trading results from the closed business of PC City Spain.

2) Like for like sales are calculated based on stores that have been open for a full financial year both at the beginning and end of the financial period and are calculated using constant exchange rates. Customer support agreement sales are excluded from all UK like for like calculations. Operations that are subject to closure have sales excluded as of the announcement date. Stores closed for refurbishment are excluded during the period of closure. All PIXmania pick up store sales are included in like for like sales.

3) UK & Ireland comprises Currys, CurrysDigital, Dixons Travel, PC World, combined 2-in-1 Currys and PC World, operations in Ireland, Dixons.co.uk, DSGi Business and KNOWHOW. Like for like sales exclude DSGi Business.

4) Northern Europe comprises the Elkjøp group, Czech Republic (ElectroWorld), Slovakia (ElectroWorld) and Dixons Travel Denmark.

5) Southern Europe comprises Greece (Kotsovolos), Italy (Unieuro, combined 2-in-1 Unieuro and PC City stores and Dixons Travel Italy), and Turkey (ElectroWorld).

6) Movements in the financial position, including levels of borrowings, of the Group since the last balance sheet date are reflective of the trading performance and statements outlined above. Other than this, there have been no significant changes in the financial position of the Group.

7) Certain statements made in this announcement are forward looking. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, we do not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise.