Dixons Xmas Mobile Sales Tumble, Gaming Soars
European electronic goods retailer Dixons Carphone has reported a 7 per cent tumble in mobile sales over the festive trading period, improved sales in gaming and supersized televisions, helped offset losses.
The report stated a “Stand out performance from Gaming” — which includes consoles, virtual reality headsets, computers, and live gaming areas — up 60% year-on-year.
Reportedly, the company is focusing on gaming in their future plans, which includes having 140 live gaming areas open by 2020.
Dixons reported that the 10 weeks to January 5 saw electronic sales in the UK and Republic of Ireland rising 2 per cent.
However, sales of mobile phones and related services were down 7 per cent and by 12 per cent in total — the company claimed it took market share from both online and bricks-and-mortar rivals to maintain its position.
The decline in mobile revenues was largely a result of fewer “post-pay” contracts, where customers buy the handset and mobile services as a bundle.
According to a report in The Financial Times, customers are purchasing handsets and services separately, and upgrade phones less often.
In response, Dixons plans to lean into this trend by offering more handset-only and Sim-only sales.
Dixons has experienced slumps in mobile phone sales previously which forced the retailer to issue a profit warning, close 92 of its 700 stores in May 2018.
CEO of Dixons Carphone, Alex Baldock said overall trading was “solid” and “disciplined” and “in line with expectations, producing record sales against a tough backdrop.”
The report added that Dixons’ full-year profit guidance of £300m was unchanged and international sales rose by 5% year-on-year, with strong numbers in Sweden, Denmark and Greece.
Shares in Dixons Carphone, which had fallen by 32 per cent over the past year, has risen 4.5 per cent.