Electrical retailer Dixons today issued a profit warning - becoming the latest UK store group to report worsening trade as shoppers are hit by rising prices and government cutbacks.
Dixons, which runs the Currys and PC World chains, said profit before tax and one-off items for the year ending April 30 was likely to be around £85m sterling, lower than analysts' estimates of £105m.
Dixons, Europe's number two electricals retailer behind German group Metro's MediaMarkt-Saturn, said sales at British and Irish stores open over a year fell 11% in the 11 weeks to March 26.
'Consumer confidence across a number of our markets has deteriorated, particularly in the UK & Ireland,' Dixons said. 'We expect it to continue to be fragile through much of 2011,' the company added.
A string of British retailers have reported a downturn in trading since the start of the year as inflation rises and austerity measures bite, raising fears that a fragile economic recovery could be derailed.
Dixons said it was considering exiting a tough Spanish market and would reduce capital spending to no more than £160m next financial year. It will also aim to cut annual costs by £50m for the next three years, extending a previous two year target.
