An Upside to Profit Warnings?

This week it has been well reported that DSG, the parent company for the electrical retailers Dixons, Currys and The Link have issued a profit warning. Their profits have reduced due to a "single digit" decline in the sale of White Goods according to their announcement. See The Telegraph

White Goods are those big ticket electrical products that usually reside in your kitchen, such as the Washing Machine, Fridge and Dishwasher, in case you didn't know.

This news comes shortly after Kesa, the parent company of Comet also announced a slow down in sales and identified that its customers had bought fewer white goods than expected in recent months.

So what does this mean for shoppers? On the surface it shows that shoppers are not spending as much as before, maybe this is because of the effect of recent interest rate increases. We are all told that shoppers are using credit more when shopping, this could make buying these goods more expensive.

Of course it could be that shoppers are waiting until after Christmas to buy their new kitchen electricals and are concentrating their spending on entertainment electricals such as iPods and LCD TVs.

One thing that it does mean is that the shops will do whatever they can to increase sales and shift some of the extra goods they are not selling. That might explain why we have just been given details of two Voucher Codes for a Washing Machine and a Dryer from Comet.

The first code offers £30 off ZANUSSI ZWF14070W washer, and the second £45 off HOTPOINT CTD00P Tumbledryer.

I think that it is likely that there will be many more of these product specific voucher codes to follow from the retailers, as they try and sell off any excess stock. So perhaps now is a good time to take advantage of these offers and buy that new appliance while the prices are being reduced.

If this is the case a few more profit warnings could mean plenty more opportunities to find a bargain.

Two other good electrical voucher codes to arrive this week are £500 off Sharp LC42XD1EA at Sharp, and £100 OFF PHILIPS 42PFL7962 LCD TV at Pixmania.