STAFF at the southern stores of electronic gadgets giant Dixons were today looking for assurances that their jobs are safe.

The company, which also owns Currys, PCWorld and The Link, is said by retail analysts to be considering closing half of its 329 high street stores across the UK.

It is understood that Dixons must take action in a bid to get back on track and keep the City sweet.

Analysts blame a tumble in profits, sales, intense competition from rivals like Comet, Argos and the supermarket chains, and the prospect of increased rents and rates.

Dixons has three local stores employing scores of people - WestQuay, Southampton, Market Street, Eastleigh, and High Street, Winchester

It is too early to say whether these outlets would be affected by any closure programme.

A spokesman said the analysts' report was "pure market speculation" and there was no comment to make about any reports over store closures.

However, Dixons has admitted it is looking at moving away from more expensive high street stores to benefit from economies of scale.

The company is already trying out larger store formats at Birmingham, Cardiff, Hull and Swansea, but it was "too early to draw conclusions".

Dixons is expected to show flat like-for-like sales for the Christmas period when it announces half-year figures tomorrow.

Analysts will be interested to learn how effective Dixons' promotional activity has been over the past two months.

Products using digital technology and DVD players are expected to have sold well.

As previously reported by business South, the public demand for DVD players was high in the run-up to Christmas, and Dixons is thought to have benefited from that, along with a surge in camera phone purchases.

In terms of interims, the City expects Dixons to report a nine per cent rise in pre-tax profits to £105.5 m. Same-store sales in the UK are likely to be flat.

Meanwhile, Marks & Spencer, which employs nearly 1,000 people in south-west Hampshire, will face a key test in its long-term recovery tomorrow when

it unveils sales figures for the critically important Christmas season.

The retailer will report negative sales growth in its clothing division over the period but overall sales are again set to be lifted by a strong performance from its food business, according to fund manager Gerrard.

Analysts will also hope that M&S confirms it delayed offering discounts on its clothing ranges - despite weak sales caused by unseasonal mild weather.