High street sales figures fall over Christmas period

High street retailers are reporting bleak sales figures for the Christmas period as the traditionally busy sales period failed to encourage consumers to start spending.

Next, the clothing retailer, saw a 3.2% drop in sales, not including new store openings, between July 30 and December 24. Sales for Next Directory were up by 2.2%.

The retailer says that it had not discounted prices in the run up to Christmas and that sales clearance is “in line with expectations” but it was cautious about the coming year as consumers continue to “face increasing demands on their finances”.

Meanwhile, DSG International, the owner of Currys and PC World, has warned that its full-year profits will be £40m to £50m lower than expected after poor trading over Christmas. It is understood that sales have been particularly bad in the UK.

Analysts had expected the group, Europe’s largest electrical retailer, to report profits of between £300m and £320m for the year to mid-April. It had already sounded a warning note in October at its half-year results when it reported a 25.4% dip in underlying pre-tax profits.

DSG says that like-for-like sales, which do not include sales from new stores, slipped by 1% for the 11 weeks to December 29. It has also reported the sales of electrical goods fell by 1% while computer products sales saw an 11% decline.

But the figures contrast sharply with results for online entertainment retailer Play.com, which saw sales increase by 24% in the fourth quarter of 2007. Sales over December grew by 29%.


Is the Olympic pitch worth winning for kudos alone?

Marketing Week

The agency that wins the London 2012 pitch could be asked to become a low-level Olympic sponsor instead of taking a fee. It’s an idea which has caused consternation among those being asked to pitch. Several agencies have slammed the Games organisers for being “cheapskates” and have criticised the way the pitch is being handled, […]

Npower incurs consumer watchdog’s wrath

Marketing Week

Energywatch has slammed European energy companies for “treating Great Britain like a treasure island” after npower revealed plans to hike its prices by 15%. The German-owned company will reveal the full extent of the rise later today (January 4) and its rivals are expected to follow suit. Adam Scorer, director of campaigns at the consumer […]


    Leave a comment