Dixons Retail reported a seven per cent fall in like-for-like sales in the quarter to July 23.

This figure, however, was for the group as a whole. In the UK and Ireland the news was worse, with a 10 per cent slump in like-for-like business compared with the same period a year earlier.

In a trading statement issued today, group chief executive John Browett said the company’s performance so far was “in line with our expectations” especially as trading last year was boosted by the World Cup and the launch of the iPad.

Some 14 per cent of group sales are now online with growth continuing in multichannel sales.

The statement revealed that gross margins across the group were down one per cent year-on-year “largely as a result of actions to gain market shares in the Nordics and other international businesses as well as clearance activity in our markets”.

Capital expenditure this year is expected to be around £100 million with the focus on “transforming those stores that present the best opportunity for improving the offer for customers”. Cost savings in the current financial year are expected to be around £60m, £10m more than originally expected.

“While underlying market conditions have remained challenging this year we have continued to trade ahead of our markets as customers respond to our improving customer offer,” said Mr Browett.

“I am particularly pleased with the significant and ongoing improvements we have seen in customer satisfaction measures in the UK which demonstrate the success of our Renewal and Transformation plan, as well as our continued strong trading in the Nordics. We remain on track for full year expectations,” he said.