Multichannel retail model gives Dixons confidence after strong year

The retailer ended its last financial year “in the best position it has been in for many years” as Dixons’ ability to enable customers to touch and feel products and provide advice and service helped performance.

James pledged that Dixons would not be beaten on price, but maintained that Dixons’ store network is an advantage despite the growth of low-price rivals such as Amazon.

James said: “People are right to go online and check prices and read reviews, and they’re right to come into the shop to try things out.

“The most expensive thing the customer can do is buy the wrong product. The store’s role is to have a really good conversation with the customer because that’s our value-add.”

Dixons posted 13% like-for-like growth in the fourth quarter from its core UK business including the flagship Currys and PC World brands, and 7% over the year to April 30.

The demise of rivals such as Comet helped performance, and full-year profits are expected to be at the top end of expectations of between £75m and £85m.

At group level like-for-likes rose 7% in the fourth quarter and 4% over the year.

Revenues at the pureplay Pixmania business slid by 34% in the quarter and 27% over the year. Restructuring has included disposals and exits from almost half the markets Pixmania operated in. A potential sale is being considered alongside further restructuring.

Panmure Gordon analyst Philip Dorgan said: “There is significant future profit opportunity as Dixons continues to gain more than its share of the Comet business and eliminates losses overseas.”