* Dixons Q3 underlying sales up 3 pct yr-on-yr
* Home Retail’s Argos Q3 underlying sales up 2.7 pct
* AB Foods’ Primark Q3 sales up 25 pct
* ASOS UK December sales up 34 pct
* Booker Q3 underlying sales up 3.1 pct
By James Davey
LONDON, Jan 17 (Reuters) – Trading updates from six major
British retailers on Thursday demonstrated that the must-have
gadget, cheap fashion and internet sales were key to overcoming
an otherwise tough Christmas.
Consumer spending generates about two-thirds of Britain’s
gross domestic product, but job insecurity and a squeeze on
incomes has put shoppers under pressure, which in turn has given
retailers a rough ride, pushing music retailer HMV,
camera store Jessops and DVD rental firm Blockbuster into
administration over the last week.
But Thursday revealed a few bright spots, with Dixons Retail
, Europe’s second largest electricals retailer, selling
five tablet PCs a second in the week before Christmas and
beating analysts’ forecasts with a 3 percent rise in group
like-for-like sales.
“This Christmas everybody wanted a tablet,” Chief Executive
Sebastian James told reporters.
In the 12 weeks to Jan. 5, Dixons’ fiscal third quarter, the
firm sold “well over 1 million” tablets, he said, with Apple
iPad, Samsung Galaxy and Google Nexus the most popular lines.
Though gross margins fell, Dixons said it would meet year
profit forecasts.
Argos owner Home Retail, which in October unveiled
a plan to reposition its catalogue-led business to a mainly
online operation, raised its year profit forecast, pushing its
shares up 15 percent.
Argos, which also saw strong demand for tablets, posted
better-than-expected third quarter like-for-like sales growth of
2.7 percent.
Shares in Home Retail are among those being heavily shorted,
according to data published by Britain’s Financial Services
Authority, so some fund managers will be staring at hefty losses
today.
CHEAP FASHION
While Marks & Spencer, Britain’s biggest clothing
retailer, posted a weak Christmas trading update last week,
cheap online fashion retailer ASOS posted on Thursday
another stellar trading performance over the Christmas period.
The company, which targets young women looking to emulate
celebrity fashions on a budget and has even clothed U.S. First
Lady Michelle Obama, said UK sales climbed 34 percent
year-on-year in December, while international sales jumped 47
percent.
A higher-than-expected 25 percent increase in sales at
discount fashion retailer Primark also underpinned a 10 percent
rise in group sales at owner Associated British Foods
Bargain-hunting consumers also drove a 3.1 percent rise in
third-quarter like-for-like sales at Booker, Britain’s
biggest cash-and-carry wholesaler.
But Mothercare, the baby and maternity products
retailer, remained a laggard despite a change in management last
year. Its UK like-for-like sales fell 5.9 percent in the third
quarter and its shares fell 4 percent.
Official data for British retail sales will be published on
Friday.
