Currys owner cuts spending by pounds 30m

Huddersfield Daily Examiner (Huddersfield, England), Oct 23, 2008

Byline: By HENRYK ZIENTEK Business Reporter

RETAIL electronics giant DSG today said it planned to cut investment spending by about pounds 30m this year in response to the slump in consumer confidence.

The move by the owner of the PC World and Currys chains came as it said like-for-like sales fell by 7% in the six months to October 18.

The figure was in line withmarket forecasts and included a 7%drop for the company's UK & Ireland electricals business.

Operations across Europe mirroring the tough UK environment - with same-store sales down by 6%in Scandinavia and by 10%in southern Europe.

DSG said PC World suffered in the current climate, with comparative sales down 11% in the first half.

Margins across the group fell 0.7% year-on-year in the period.

Mr Browett said: "We are very focused on managing through this by reducing costs and improving our cash position."

He said the group's renewal and transformation programme was also "generating returns ahead of initial targets".

As part of the plan, the group opened a newly refurbished 55,000sq ft Currys megastore near Birmingham last Thursday, which sawmore than 3,000 shoppers queue up for bargains at the opening sale.

DSG also plans to open 40 new format PC World stores by mid-November.

DSG is the latest retailer to report tough conditions in recent weeks.

Yesterday the ownerf Homebase, Home Retail Group, slashed pounds 542mfrom the value of the struggling DIY chain.

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CUTBACKS: DSG has unveiled a slump in sales