Dixons, owner of Currys and PC World, recorded a 5% drop in sales over Christmas.
In a trading update, the firm said like-for-like sales fell 5% in the 12 weeks to January 7th, 2012. In the UK and Ireland, like-for-like sales were down 7%. Analysts had predicted a sharper fall.
Online has become increasingly important for the business and now makes up 19% of sales across the group.
Chief executive John Browett called the result a "solid performance" with consumer confidence still "fragile".
He added that Dixons – which operates 640 stores in the UK under its various brands – would take a "cautious approach" in the year ahead.
More after the break
Electrical retailers have had a tough time of late, with Best Buy announcing in November that it would close its UK stores, and Comet was sold by its parent Kesa Electricals to a private equity group for £2.