DSG International, the owner of Currys and PC World, is planning to cut capital expenditure across stores by about £30m. The move comes as the group reveals a 7% decline in sales over the first half of its financial year.
It says that consumer confidence has “significantly deteriorated” across Europe in recent weeks, leaving its stores competing in a “depressed market.”
In a statement DSG says: “As a result we are further focusing on cash, cutting costs, improving margins and reducing stock. The group is also cutting capital expenditure by approximately £30m this year with reductions focused on lower returning areas of lesser priority.”
DSG has reported a decline in sales across all of its European stores for the 12 weeks to October 18, although sales across its websites grew by 9%.
John Browett, DSG chief executive, says: “The trading environment continues to be tough. We are very focused on managing through this by reducing costs and improving our cash position. Alongside this we are progressing our renewal and transformation programme as it is delivering for customers and generating returns ahead of initial targets.”
Last month, the retailer said it did not expect a recovery in profits before 2010.