The collapse of electrical retailer Comet has helped rival chain Dixons record its best result in years.
Dixons, which also owns PC World and Currys, said like-for-like sales in the UK and Ireland rose by 13% in the three months to the end of April.
The company weathered the economic downturn that saw Comet go bust at the end of last year and was able to attract customers by lowering prices a move which means margins are likely to be down 0.7% for the full year.
Despite this, in its fourth-quarter trading update, Dixons said it expects its full-year underlying pre-tax profit to be at the top end of expectations of £75 million to £85m, up from £70.8m in 2011/12.
Shares were up on the back of an overall group like-for-like sales rise of 7% for the quarter and 4% for the 12-month period.
Chief executive Sebastian James said: “This strong year puts Dixons in the best position it has been for many years.”
He added there has been “profound restructuring” with significant cost savings and “major changes in the competitive landscape”.
“Above all we are enjoying the feeling of a little wind in our sails and we want to make sure that, in spite of continued economic uncertainty, this carries on into next year and beyond,” he said.
Dixons said sales figures for northern Europe were up 14% but fell 5% in “extremely difficult market conditions” in southern countries including Greece and Italy.
Trading continued to be “very challenging” at European online operation PIXmania, where there had been “significant restructuring” including withdrawal from almost half the countries where it operated and the closure of all bricks-and-mortar stores.
Yesterday’s update follows a previous positive quarter in the three months to January, with UK and Ireland sales up 8%, including the sale of more than 1m tablet computers.
Retail consultants Conlumino said Dixons had benefited from being “the last specialist standing in the UK electricals sector”.
It added that it had also been “proactive” in reorganising the business.