Dixons report a loss but Comet’s demise could boost business

Dixons Retail has reported a loss, although Comet’s administration could ease competition

16:37 29 November 2012

Dixons Retail is the next big company to have suffered a down-turn, as it has reported a half-year loss. The group, who also own Currys and PC World, had pre-tax losses for the 24 weeks that led up to mid-October.

The firm are supposedly linking the loss with a write down in Pixmania’s value. This relates to online gadgets. Aside from this, the company is thought to be happy with progress that it has made in other areas.

Dixons Retail had a total group sales rise of 4per cent, as stated in a report by the BBC, and also business for the UK and Ireland changed significantly, with profitability being apparent for the first time since 2007. The success of the sporting summer months is thought to have played a part in this.

“I am particularly encouraged by our performance in the UK and Ireland and in Northern Europe and we were particularly busy during the sporting and cultural events during the summer,” said Dixons Retail Chief Executive, Sebastian James, on Thursday.

“While August and September were, as expected, a bit quieter, we remain cautiously optimistic about the outlook.”

Dixons Retail has also reportedly been seeing positive internet sales, as the company are branching out with regards to customers being able to order products online.

Mr. James’ optimism could be linked to the fact that Comet is in administration, as the demise of the electronics giant would be beneficial to Dixons as they are a rival.

Comet has plans to close a further 125 stores if a buyer is not found. This was announced by its administrators, Deloitte, on Tuesday. This would result in Comet having only 70 stores left.

Comet went into administration at the start of November 2012.