12/3/2008 11:12:00 AM
DSG hits first six-month loss in 25 years
DSG reported a torrid set of results last week, with its first loss in 25 years for the six months to October. It lost just under £30m, compared with the profit of £52m it achieved in 2007.
Both of DSG’s retail brands, Currys and PC World, have struggled to generate footfall into their stores despite TV advertising campaigns.
The performance of PC World was particularly marked, with sales of PCs and laptops understood to have been affected.
The losses come as more customers are buying subsidised laptops and lower specification netbooks from mobile networks and mobile retailers. Carphone Warehouse has already taken a 10% share of the laptop market. DSG has also recently been affected by the actions of one of its main credit insurers, Atradius, which stopped covering risk of stock put into the retailer. Suppliers were spooked and confidence in the retailer’s future was dampened.