Big four help to reverse the high street gloom

Dixons, the owner of PC World and Currys, catalogue chain Argos, discount clothing chain Primark and online fashion retailer ASOS all reported a bigger-than-expected surge in Christmas sales.

Dixons said like-for-like sales in the UK and Ireland rose eight per cent in the 12 weeks to January 5, despite administrators for failed rival Comet holding a clearance sale for much of the period.

The group said sales of tablet computers were “phenomenal”, with more than a million sold in the UK and Ireland. Apple iPads made up a third of tablet sales, but it also had strong demand for the Samsung Galaxy and Google Nexus models.

Chief executive Sebastian James believed the group gained many new customers from Comet, prompting it to take on 500 permanent staff from the failed chain.

Argos also reported strong trading figures for the peak Christmas period. Owner Home Retail Group said internet sales accounted for 42 per cent of sales as more shoppers took advantage of the chain’s new tablet and smartphone apps, as well as click and collect services from stores.

Argos sales rose 2.7 per cent on a like-for-like basis in the 18 weeks to January 5.

The Argos business, which sells products in 739 stores as well as online and through a television channel, took a total of £1.74bn over the 18-week period.

Consumer electronics, particularly tablet computers, drove the improvement, while there was also growth in white goods, toys and core electricals. This was offset by weaker trading in homewares and jewellery categories.

Primark reported a higher-than-expected 25 per cent increase in sales. Parent company Associated British Foods said Primark benefited from a comparison with weak sales during the unseasonably warm autumn of 2011 and good trading over the Christmas period.

Panmure Gordon analysts said in a research note: “Even allowing for an easy Autumn comparison (2011 was unseasonally warm), this performance is well ahead of expectations.”

Primark has benefited as recession-hit consumers hunt for bargains.

Online fashion retailer ASOS said retail sales rose 41 per cent to £78.1m in December, helped by a strong showing in the UK over Christmas.

ASOS, which targets young women who want to emulate the designer looks of celebrities like Nicole Scherzinger and Fearne Cotton, posted international sales of £42.4m and UK sales of £35.7m.

But it wasn’t all good news on the high street. Mothercare said UK like-for-like sales fell 5.9 per cent in 13 weeks to January 12 despite recent improvements.