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