Dixons Retail, the parent company of Currys, PC World and Dixons, reported that the pre-Christmas snowstorms had reduced its peak season business in the UK by two per cent.


The group pointed out that its UK operations had otherwise performed well. This is despite the fact that like-for-like sales for its UK and Ireland businesses together fell by four per cent in the 12 weeks to January 8 compared with a year earlier.


Total group sales dipped one per cent and like-for-like sales fell two per cent over the period while gross margins dropped by 0.2 per cent year-on-year.


Sales in the group’s e-commerce division were 7 per cent lower than a year ago – a figure that seems to fly in the face of e-commerce trends elsewhere until it is realised that the retailer transferred sales of higher-value products to its multichannel business, which grew 8 per cent.


The store group also reported that its new-format outlets continued to deliver good gross profit uplifts of 20 per cent.


It predicted that full-year underlying pre-tax profits are now expected to be at the lower end of current forecasts and in the range of £100million to £110million.


John Browett, Group chief executive John Browett said he remained cautious about the economic outlook. Even so, he said: “Peak trading has been solid in a tough market. The adverse weather conditions reduced footfall in the run up to Christmas day.


“We saw strong trade in the post Christmas Sale as customers were keen to take advantage of our great deals on 3D TVs, Apple products, tablets and white goods ahead of the rise in VAT in the UK.”