Dixons’ full-year profits were down year on year but nevertheless came in at the top of expectations – which means the electricals retailer looks to be in a good position for growth.

Dixons’ full-year profits were down year on year but nevertheless came in at the top of expectations – which means the electricals retailer looks to be in a good position for growth.

Over the last few years under John Browett, and now led by Seb James who also played a pivotal role in the time leading up to his promotion to chief executive, Dixons has done a good job of confronting the challenge from online rivals.

To compete on price with pure-plays, Dixons has had to bring down costs while not stinting on service – increasingly a differentiator – or in-store standards.

The retailer has effectively squared that circle.

The opening of two-in-one Currys and PC World stores has enabled the closure of one or other fascia in locations where each had a presence. At the same time, improvements to the joint stores, the ability to effectively showcase the latest product and the opportunity to demonstrate high standards of customer service, has made shops a strength rather than a weakness and allowed the exploitation of multichannel potential.

While Dixons’ sales suffered in troubled southern European markets such as Greece, the benefits of the retailer’s strategy were clear in the core domestic market. UK and Ireland like-for-likes surged 8% in the final quarter of last year and operating profit advanced 15%.

Dixons will need to keep up the momentum, but progress shown so far indicates that the group has come up with what seems to be a compelling proposition in a rapidly changing market.

Pennycook won’t be left on shelf

Morrisons will miss finance director Richard Pennycook, who will leave next year.

Having helped Morrisons sort out the chaos in the aftermath of its takeover of Safeway, led IT improvements and overseen the development of an online business with the Kiddicare acquisition, Pennycook’s skills are likely to be in high demand as he goes plural.