HARD TIMES No.3

DSG TO OPEN

50 ELECTRICAL MEGASTORES

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Currys and PC World owner DSG International is to open 50 megastores as part of an ongoing revamp of its UK business.

The electricals giant will base the new stores on its 55,000 sq ft Currys megastore in Birmingham where average weekly profits have grown by more than 50 per cent since October. The site is on course for annual sales of up to £35 million.

DSG said the megastore trial will be rolled out to five more UK stores this year and believes there are plenty of opportunities within the existing Currys and PC World estate for “between 20 to 50 such superstores across the UK”.

It comes as DSG prepares for the arrival of US electrical giant Best Buy which will open superstores in the UK later this year.

As part of a three-year turnaround plan, DSG has overhauled 60 of its UK outlets with 13 Currys superstores, four Currys.digital stores, 41 PC World superstores, the new Currys megastore and one trial store combining Currys and PC World.

The “consumer-focused” revamp involves the retraining of store staff, more choice of products and shop redesigns, as well as the removal of 77 under-performing Currys.digital stores from the group’s estate as their leases end over the next few years.

The group has been hit hard by the consumer spending downturn and in January reported a 10 per cent drop in quarterly sales as shoppers put off purchases until after Christmas.

The revamps have delivered average gross profit uplifts of 15 per cent to 50 per cent, DSG said, and chief executive John Browett said the brand is on track with plans to reformat another 90 to 120 stores in the UK and Nordic region over the next 12 months.

DSG plans capital expenditure of between £140 million and £155 million in 2009/10, rising to between £155 million and £165 million over 2010/11

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© Independent Television News Limited 2009. All rights reserved

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