Dixons Retail, Europe's second-biggest electrical goods retailer, is to pay €69m to a German firm to take the loss-making PIXmania e-commerce business off its hands.

PIXmania, which saw underlying sales fall 28% in its first quarter, has been dragging down the performance of the group as it battles difficult markets across Europe.

Dixons said it had received an irrevocable offer from Mutares, a German listed industrial holding company, to purchase PIXmania, which operates in France and the Czech Republic.

The deal, which is subject to a consultation period with PIXmania's French works councils, would see Dixons provide the cash to support mutares's plan to develop the business.

"In order to succeed as a pure play e-tailer, PIXmania needs a different kind of entrepreneurial vigour," Dixons' chief executive Sebastian James said.

In June, Dixons booked restructuring and impairment charges of £168.8m sterling, relating mainly to PIXmania and the disposal of its Equanet business.

Dixons also said today it had agreed to sell its loss-making ElectroWorld operations in Turkey to local firm Bimeks for about £2m.

News of the disposals came as Dixons, home to the Currys and PC World chains in Ireland and Britain, Elkjop in Nordic countries, UniEuro in Italy and Kotsovolos in Greece, said sales at stores open over a year rose 2% in the 12 weeks to July 31, in line with analysts' expectations.

Like-for-like sales were up 6% in the UK and Ireland and up 5% in northern Europe. But they fell 12% in the southern Europe division.

Across Europe many store groups are still struggling as government efforts to bring down national debt reduce consumers' disposable incomes.

Electrical retailers have been particularly exposed because they sell discretionary goods and face intense competition from supermarkets and internet retailers such as Amazon.

But in Britain, Dixons has benefited from the demise of rival Comet and the partial exit of Jessops and HMV. It has also been cutting costs, revamping stores and seeking to improve products, prices and service.