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DSG unveils three-year turnaround plan

15/05/2008 15:18:28
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Retailer aims to change fortunes with threat of Best Buy looming

DSG has unveiled a three-year turnaround plan after Carphone’s deal with Best Buy, which will bring the US electronics retailer to the UK.

The under pressure electronics retailer, which owns Currys and PC World will be unrecognisable by the end of the three year plan.

New DSG chief executive John Browett unveiled a ‘consumer-focused’ revamp which will bring the wholesale retraining of store staff, more choice of products and shop redesigns.

The plan includes the removal of 77 under-performing Currys.digital stores from the group's estate as their leases end over the next four to five years.

It also includes £50 million of cost-cutting in the coming year, some of which will be aimed at the group's head office in Hertfordshire, but Browett denied reports a quarter of the offices 1,600 staff are to be axed.

DSG has been one of the major casualties of the consumer slowdown, issuing two profits warnings this year and continued trading difficulties in Italy.

It operates more than 700 stores in the UK - more than 80% of which are Currys and Currys.digital - as well as more than 500 across Europe. Currys.digital replaced the Dixons high street trading name in 2005.

City analysts were unimpressed by the update, with shares down another 9%.

Last week, Carphone agreed a deal with Best Buy that will see the American electronics giant open up to 200 stores across Europe, putting further pressure on DSG.




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