RETAILERS Dixons and Asda plan to create more than 3,000 jobs between them over the next year.

Dixons will create 1,300 jobs at existing and new stores, including 120 in the North-East.

Meanwhile Asda plans to take on 2,000 full and part-time staff over the next two months, to help drive clothing sales at its 215 sites.

Dixons made its jobs announcement as it reported pre-tax profits of £277.8m, compared to £242.2m previously, before exceptionals.

These included the sale of Internet provider Freeserve to French Group Wanadoo for £417.5m

When that was added to the equation, profits rose to £647.1m. Turnover for the year was £4.69bn, up from £3.89bn.

Group chief executive John Clare said the growth in staff numbers reflected consumers' enthusiasm for new technology, and continued demand for the latest digital products.

"Our new employees will enable us to keep driving up service excellence, and offer the combination of exciting products and great prices that brings millions of loyal customers back to our stores each year," he said.

Asda will take on staff as it looks to expand its George range of clothing, which currently generates £600m a year.

The firm is introducing more ranges across its stores to try to attract fashion-conscious shoppers of all ages. It is also introducing larger sizes.

It wants to have the staff in place by the end of August.

The move comes just two months after Asda said it was looking to hire 10,000 UK staff for its supermarkets.

Andy Bond, who has replaced designer George Davies as head of George clothing said the clothing business was "formidable and accelerating rapidly" with like-for-like sales in double digits.

He said: "Although we feel good about our progress, only 13 per cent of Asda shoppers buy their clothes from George. I don't have to spell out what converting even a proportion of the remaining 87 per cent would mean for us."

Asda claims it has eight million customers.