Dixons sales are down but satisfaction is up

Dixons Retail has reported further sliding sales at its UK stores as the electricals market continues to struggle, but says customers are responding to its “improving offer”.

Knowhow

Total sales across the group were 1% down and like for like sales slipped 7% in the 12 weeks to 23 July.

The group says UK performance was in line with expectations, with like for like sales down 10% during the period, while the Nordics region reported 4% increase in like for like sales.

The group says customer satisfaction and advocacy “continues to make encouraging progress” thanks to the Knowhow customer service proposition that is now in place across the UK and Ireland business.

Dixons recently promoted former marketing director Niall O’Keefe into the new role of development director for the Knowhow brand to put service at the heart of the business and set itself apart from the competition.

Rival Best Buy has also recently made moves into sports sponsorship through a partnership with Everton and claims to be the first electricals retailer in the UK to launch a mobile commerce platform.

The chain plans to invest £100m in transforming stores this year, with a focus on those “that present the best opportunity for improving the offer for customers”.

The group has also identified a further £10m of cost savings, meaning total cost savings of £60m in the current financial year.

Group chief executive John Browett says: “This performance was in line with our expectations when compared with particularly strong trading last year as a result of the World Cup and launch of the iPad. While underlying market conditions have remained challenging this year we have continued to trade ahead of our markets as customers respond to our improving customer offer.

“While we remain cautious about the economic outlook we will continue to deliver on our Renewal and Transformation plan and make the business better, easier and cheaper to run and deliver an unbeatable combination of Value, Choice and Service for customers.”

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here