Comment: Can Dixons keep its spark?

Electricals group Dixons, owner of Currys and PC World, reports on first-quarter trading next Thursday following a strong performance last year.

The period, running up to the end of July, is not the retailer’s biggest but investors will hope that the direction of travel reported at the prelims is being maintained.

Then, the core domestic business and northern European operations were fully switched on. Like-for-likes surged at both. The weather may have affected the UK towards the end of the first quarter - unlike some retailers, Dixons tends not to do so well when it’s hot.

But in its last weekly update - which falls, of course, outside Dixons’ reporting period - John Lewis recorded a strong showing from electricals and home technology.

Back at the June results, Dixons group chief executive Seb James said the group was progressing well on its journey “from survivor to winner”. He said: “The year ahead offers many fantastic opportunities for us and we have plans which touch every part of our business to make things better, easier and faster.”

Since then there have been changes such as improved delivery options, vital as retail increasingly becomes multichannel. It is likely such initiatives have been a focus during the first quarter, ahead of the big trading periods to come.

James pledged a consistent approach “from Truro to Tromsø”. He didn’t include in that particular statement Turkey or Toulouse. However, there is also likely to be interest next week in how Dixons is getting on with assessing what to do with its Turkish business and France-based online business Pixmania.

In each case, a sale is possible. In Turkey the growth of electricals retail space has been outstripping market growth, prompting Dixons to explore strategic options. Pixmania meanwhile clocked up a loss of £31.3m.

Although there may be little new information on Pixmania or Turkey next week, investors are likely to be happy if the core business remains on track.