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DSGi to axe 200 stores

Comments (3)

Retail chain cuts dividend and plans to close down up to 200 stores

DSGi may close down as many as 200 of its 700 stores as new chief executive John Browett plans to shake up the retail chain.

Yet more stores could be converted into joint Currys and PC World sites as part of the new strategy.

Browett said that the firm “has to get the UK operation right”, though he added that it could take years to do so.

Meanwhile analysts estimate that DSGi’s dividend could be cut by up to 50 per cent.



The group has issued two profit warnings this year. Internationally, its French operation PC City was closed down last year and it was announced last month that 40 of its Italians stores would be closed over the next two years.

Link: The Sunday Times

Tags: Dsgi, John Browett, Store Cuts
1
 

“DSGi”
Posted by: Indepent Retailer - May 12, 12:14pm

It was more when than if.....

With the Profit warnings and the rumours last year of PC world closing down some of there stores, it did seem inevitable that this was going to happen.

Streamlining there stores would seem logical and does prove that even the multipes struggle as much as us wee independents.


2
 

“Re: DSGi”
Posted by: Mr Coker - May 13, 8:44am

Let’s face it; Dixons has no longer a competitive edge on the High Street Market because they are not doing anything different.
Consumers used to love shopping in Dixons because Dixons provided them with second to none service and new Gadgets, this is no longer the case.
Consumers have to now struggle to find someone to serve them and when they do the level of interest is somewhat disappointing as well as their knowledge. Especially when you’re at the checkouts and no one is there to take your money.
This is precisely why so many people are purchasing products from the internet because they would rather find out about the products themselves, rather than having all the hustle and bustle buying from a high street store.
I can not see a future for Dixons on the high street in the next 5 years because they have let the consumers down. It is a great shame, because Dixons has been more of a friendly family business and when they used to invested time and money on their staff.
It shouldn’t be all about money!!!!
This is why most manufactures know this; however DSGI still think they are a big player in high street electronics. It’s about time DSGI looks at the bigger picture and not as far as hand in front of face.


3
 

“Re: Re: DSGi”
Posted by: Ely - Jun 26, 10:56am

Too many manufacturers look to DSGi to establish brand awareness and loyalty for them. The truth is when you're sitting infront of a John Church and he's just insisted you cough-up £100K marketing budget for Back-to-School promotion, you have to hope it will perform some miracle. So what do PCWorld or Currys do for a brand? Simply; they stick it on the shelf, end-cap it, if you pay £25K for the priviledge, or even slip your brand in a naff TV add, for £200K and let market competition take care of the rest. Truth is, no electronic retail outlet sells a brand. That's the job of the manufacturer. So come out from behind the huge marketing spends you've been throwing at DSGi for the past 5 years and do something imaginative. OK you might not be a Steve jobs, but surely you haven't forgotten how to sell a retail brand have you? Then again you've probably let your best talent go over the last few years, because there's no money left after huge marketing spends!


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