Smartphone sales give lift to Dixons’ revenues

Electricals retailer Dixons Carphone hailed a “very encouraging” start to its trading year as revenues surged on the back of strong smartphone and TV sales.

The group – created following the £5bn merger of Dixons and Carphone Warehouse last summer – said like-for-like sales in the UK jumped 10 per cent in the 13 weeks to August 1 compared with a year ago, beating City forecasts.

It added that despite seeing “price competitiveness” throughout the period across all of its regions, group like-for-like sales lifted 8 per cent. The group also runs stores in Northern and Southern Europe.

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The business said sales in the UK were driven by significant market share gains in phone sales, reflecting the gap in the market left by the closure of rival Phones 4U last year. It added electricals sales also grew, despite the tough comparison of being up against last year’s World Cup.

Dixons said the business would continue to invest in such areas as service levels, digital marketing and free warranties to ensure its profitability.

These sales contrast with rival high street chain Argos, owned by Home Retail, which yesterday said store sales fell by 2.8 per cent in the 13 weeks to August 29 due to weak demand for TVs and tablet computers.

Dixons said it will open its first US joint venture stores with American electricals retailer Sprint next week. It said in July it plans to open 20 retail stores with Sprint.