Dixons Retail issues profit warning

11 per cent drop in sales year on year

More queues like this are needed

Electronics retail giant Dixons Retail has issued a profit warning, admitting that sales were down a whopping 11 per cent year on year.

With the country still reeling from the economic downturn, it's hardly surprising that electronics goods sales have dropped, and Dixons Retail – the company behind high-street stores Currys and PC World and online retailer Dixons – admits that 2011 remains 'fragile'.

The company points out that 'consumer confidence' has impacted on its sales, as we put off buying our new television in case our financial world collapses again.

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"Consumer confidence across a number of our markets has deteriorated, particularly in the UK & Ireland," Dixons said.

"We expect it to continue to be (fragile) through much of 2011."

That said, Dixons did report a pre-tax profit of around £85 million, which is consistent with the lower end of analyst forecasts.

Dixons has indicated that it may pull out of Spain, as well as reduce capital spending.

Via Reuters