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.”

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