The electrical goods retailer, Dixons, has become the first major chain to report a fall in Christmas sales.

The group, which also takes in Curries and PC World, was hit by shoppers delaying their spending until the start of its January sale.

Personal computers bore the brunt of the change in spending habits, backing up evidence from the British Retail Consortium this week that showed consumers were putting off spending on expensive items to snap up bargains in the sales.

Dixons' sales fell by 4%

In the gloomiest news so far from the high street, Dixons said sales in the eight weeks to January 10 fell by 4% after taking into account the effects of new store openings.

It also warned the City that while profits for 1997-98 would be well ahead of the previous year they were likely to fall below market forecasts made when it was benefiting from the extra spending generated by building society windfalls.

The warning came as the group reported pre-tax profits of £77.1m for the half year to November 15, up from £57.5m, but less than analysts were expecting.

Commenting on Christmas trading, the chairman, Sir Stanley Kalms, said: "The main impact was a fall in the pre-Christmas period in sales of personal computers, although software and computer peripherals grew strongly.

"Domestic appliances, games, photography and communications products also showed good growth.

"A new Christmas trading pattern has now become apparent, with a greater proportion of consumers deferring large purchases until the January sale."

Back to top | BBC News Home | BBC Homepage	©