Dixons Retail Plc forecasts Dropping Revenues

E-commerce sales of purely internet-based electronic retailer Dixons Retail Plc dropped 4% due to consumer choices to uses the internet as information platform to make a well-educated physical purchase in the store afterwards.

The websites dixons. co. uk and pixmania websites fall under the guardian of Doxons' e-commerce department. The consumer trend is currently directed towards shopping on multiple channels using the possibility of buying internet offers of physical stores or vice versa.

In the first half of the ongoing fiscal year, the UK based internet company Dixons announced a loss of 4.9 million pounds ($7.7 million)which represents an improvement to last years losses.

The electronic retailer, however, does not forecast highly positive christmas revenues as favored gift items are currently iPods of Apple Inc. or 3-D TVs. In the UK, there currently exists a generally low willingness to spend on side of the consumers due to announced government cuts in the public sector. A circumstance that might severely accelerate a further downwards trend.

"Progress in terms of profitability remains limited, which is partly due to the positioning of the group, the weak product pipeline and the economic environment, which is likely to deteriorate further," explains a market analyst.

Dixons' CEO underlines that the announced implementation of value-added tax in January might accelerate sales increases.