Argos and Currys suffer in drop in sales

More retailers today announced a drop in sales as a result of the current economic downturn.

DSG International, which owns PC World and Currys, confirmed that for the 12-week period to January 10th like-for-like sales were down ten per cent and total group sales were down one per cent.

A statement said gross margins across the group were down 0.8 per cent year on year, as a result of both the increased proportion of revenue in the sale period as well as a higher mix of televisions and laptops.

John Browett, DSG International chief executive, commented: "The sales pattern through the period was as we anticipated with customers waiting for the post Christmas sales to purchase discretionary products, particularly televisions and laptops.

"We expect 2009 to be challenging across most of our markets and are actively planning and managing the business for negative like for likes."

Home Retail Group also announced today its Argos chain witnessed a 7.5 per cent drop in like-for-like sales for the 18 week period to January 3rd.

Homebase, also owned by Home Retail Group, said sales for the same period fell 10.2 per cent.

Home Retail Group's chief executive Terry Duddy said: "Our markets continue to be significantly impacted by the sharp reduction in consumer spending.

"As previously indicated, we expect the trading environment for the next financial year to be extremely challenging."