Dixons sees no let up in UK tablets boom

Firm helped by demise of Comet in UK

British sales of tablet computers are booming, Europe's second biggest electricals retailer Dixons said, underpinning profit growth and offsetting weak markets in debt-squeezed southern Europe.

The firm, which trails Metro’s Media-Saturn by annual sales, achieved triple-digit growth in tablet sales over the year in the UK.

Chief executive Sebastian James forecast "another big tablet Christmas".

“Less than a third of UK households now have a tablet and we also think these are personal devices so there’s lots of road left in this particular product,” Mr James told reporters yesterday.

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“And there’s going to be some further product innovation as these tablets get thinner and lighter and more powerful.”

Dixons have beat guidance with a 15 per cent rise in underlying profit for the year to April 30th.

The most popular lines for customers are the Apple iPad, the Samsung Galaxy and the Google Nexus.

Across Europe many store groups are struggling as government efforts to bring down national debt crush consumers’ disposable incomes.

Electrical retailers have been particularly exposed because they sell discretionary goods under cut-price competition from supermarkets and internet retailers such as Amazon. On Wednesday the third biggest player in the sector, Darty, reported a 66 per cent fall in annual profit.

However, in Britain, Dixons, which trades there as Currys and PC World, has benefited from the demise of rival Comet and the partial exit of Jessops and HMV. It has also been cutting costs, revamping stores and seeking to improve products, prices and service.

While Mr James cautioned against extrapolating fourth quarter UK like-for-like sales growth of 13 per cent into the 2013-14 year, he said that the firm had “got some momentum”. – Reuters