Currys and PC World owner Dixons Retail is expected to continue to outperform arch-rival Kesa, owner of Comet, Shore Capital maintains.

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Analyst Ramona Tipnis noted that John Lewis has recently flagged the strength of electrical sales in its shops and believed there could be a read-across to Dixons Retail.

She said: “We believe this commentary is encouraging for Dixons relative to Kesa. Dixons’ investment in service and the improvement in the product offering ought to come to the fore.”

However, she acknowledged: “We believe that Dixons will continue to outperform Kesa and even the market, but is unlikely to see trading replicate that seen at John Lewis.”

The broker rates Dixons Retail a buy and Kesa a sell.

There was speculation this week that a merger between Kesa and Dixons Retail might be on the cards following a Kesa investor presentation last week. However, electricals sector sources dismissed the idea as fanciful.