But slow electrical sales plunged the company into near £30 million loss in the first half of its financial year.

The technology and white goods retailer, which owns Dixons, Currys.digital and PC World stores, has been improving processes, stock control and back office systems, as well as closing stores, in two cost cutting programmes.

The cost improvements were vital as the global economy entered a recession, DSG said, as it announced it had plunged into a £29.8 million loss in the half year to 18 October. This compared against a £52.5 million profit in the same period a year earlier.

In a tough week for retailers, Woolworths and MFI have both gone into administration.

"[DSG] is prepared for a recessionary environment and is consequently focused on cash generation," the group said in a statement. "This includes reducing costs, optimising money margin and tight stock control, while continuing to deliver on the renewal and transformation plan." In the first half of the year, Dixons reduced capital expenditure by £30 million year-on-year, to £160 million.