Slow Down Of Electrical Goods May Hit Sky Subscriptions
Dixons, the electrical superstore, said yesterday its sales had slowed and warned margins would come under pressure in the run up to Christmas as consumer spending seems to have lost pace in the past few weeks.
The festive period, which is traditionally the busiest for retailers, seems to have been stunted by recent interest rate rises and general housing market slowdown, which could all spell bad news for some television and radio broadcasters who are hoping to promote their new products over Christmas.
Last month Sky launched a starter pack in a bid to boost waning subscriber figures. The pack, which Sky hoped would make the perfect Christmas gift and attract digital television newcomers, contains everything needed to receive Sky TV channels. However, if the warning from Dixons chief executive is anything to go by, Sky might not get the boost it was hoping for.
John Clare, chief executive said: “The rate of growth we’ve seen has slowed as the half has gone on, particularly over the past few weeks. We are feeling more cautious about the prospects for Christmas.”
Sales of other electrical equipment, such as digital televisions and radios are also expected to be down over last year, however, if you’re a consumer it might not be all bad news, as Clare said that ‘it could turn out to be a hell of a bargain Christmas for consumers if retailers have overstocked.’
In June, Capital Radio launched its own Xfm branded digital radio which is also for sale in Dixons and Currys before Christmas. The group hoped that the launch of their own radio would attract younger listeners to digital stations in a bid to move the market forward.
Last week, the British Retail Consortium said that October had been the worst month of this year for the high street, with sales of big ticket items, such as widescreen television and furniture, leading the fall.
Dixons: 08456 080 809 www.dixons-group-plc.co.uk
Recent Stories from NewsLine Judge Reserves Decision Over RAJAR Court Case Capital/GWR Merger Could Face Competition Enquiry Emap Strengthens Radio Business With New Appointments
Subscribers can access ten years of media news and analysis in the Archive