But Italy holds profitability back
Europe's biggest electrical retailer DSG International, parent of Currys and PC World, has revealed group sales - including the new businesses division - up 14 per cent and a like-for-like increase of 5 per cent, for the 28 weeks to November 11, despite a weak performance in Italy.

However, because of the difficulties in Italy, profits in the first half are expected to be flat.

UK electricals, which also includes Currys.Digital and Dixons Tax Free, reported a 4 per cent sales growth and 5 per cent like-for-like growth. UK computing, which comprises PC World, PC World Business, Genesis Communications and The Tech Guys, revealed growth of 6 per cent. PC World also unveiled a like-for-likes up 3 per cent.

Since becoming a pure online electrical retailer, Dixons.co.uk has increased its sales by 190 per cent. This has been driven by competitive pricing and the introduction of new categories and products.

The sales performance of UniEuro in Italy was down by 4 per cent and like-for-likes fell 10 per cent. According to the company, the backdrop of political uncertainty, proposed economic reforms and a subdued economy has reduced consumer confidence, creating a more price competitive market.

Ireland performed strongly, with total sales up 28 per cent and like-for-likes up 14 per cent, as it has continued to expand its store base.

DSG group chief executive John Clare said: 'Consumer electricals markets across Europe continue to be driven by sales of flatpanel high-definition televisions and strong sales of laptop computers. We continue to experience significant growth in our multichannel and pure play e-tailing operations. However, the performance in Italy was very disappointing. The recently strengthened management team is implementing a plan to recover our position.'