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DSGi sales up but B2B reseller biz finds life tough

Microscope contributor

DSG International had a comparatively rosy start to the year with sales fuelled by rising demand for televisions prior to the World Cup and early exclusive rights to the iPad but it confirmed that the B2B market remained challenging.

In a trading update for the first twelve weeks of fiscal 2011, group sales were up 3% on a like-for-like basis while the UK grew 6%, Nordics were flat, and the e-commerce unit was up 3% as International sales fell 1%.

"This is an encouraging start to the year, especially given the challenging market conditions." said DSGi chief executive John Browett.

The UK operation gained market share as the quadrennial football competition took place and it made the most of early access to Apple's slate PC ahead of the vendor's Premium Partners, the firm said.

The two in one model - opening High Street and superstores that combine the Currys and PC World brands - means that DSGi will report only UK numbers.

However, a spokesman confirmed that DSGi was continuing to wrestle with difficult market conditions that have dramatically reduced the size of its reseller operation DSGi Business in recent years.

"In terms of B2B, it is still tough but we are doing all the right things with Phil Birbeck and his team," he added.

Shareholders will next week be able to vote on whether to approve the proposed name change from DSG to Dixons Retail next week, a move that initially sparked some industry talk that it was a precursor to selling the B2B unit.

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