New-look stores provide boost to DSG International sales

DSG International said it was particularly encouraged by trading in UK electricals, the Nordic countries and Spain and Italy.

It has launched new format stores such as Currys Megastores and combined Currys and PC World 2-in-1 shops as it attempts to attract customers with wider ranges and improved standards of service.

Like-for-like sales in the UK and Ireland electricals business rose 6 per cent in the 28 weeks to May 1. This was down on the 8 per cent improvement seen over Christmas, but analysts said this was still a decent performance given the impact of snow and the weak electricals market. The PC World computing business posted a sales drop of 5 per cent, below the fall of 3 per cent seen in January.

DSG is facing up to increased competition following the arrival of US electronics firm Best Buy.

It plans to refurbish around 100 stores in UK and Ireland in the 2010/11 financial year, with the majority ready for Christmas. The programme includes the opening of 25 Megastores, taking the total in the UK to 33, as well as 60 combined stores and 12 Currys and PC World standalone superstores.

DSG shares jumped more than 6 per cent following yesterday's update.

Investec Securities described the update as "very reassuring" and said it continued to expect profits of between 80m and 90m in the year to April 30, against 56.1m a year earlier.

Analyst David Jeary added: "DSG's recovery plan remains in its early stages, but it is as much about self-help as it is cyclical recovery.

"As such DSG should successfully drive market share gains, despite potentially weakening consumer demand."