Best Buy is about to enter an extremely competitive sector in the UK market.
Over the past decade a number of big name consumer electronics retailers, such as Powerhouse, Tandy and Rumbelows have come and gone in what is a volatile market.
Even the main player in the UK electronics market, DSG, the parent company of PC World and Curry’s has had a tough time recently. Earlier this year, the company issued a warning, saying that its profits were likely to be £40-50 million below expectations. Competition from a big new player in the market could make the situation worse, but DSG today dismissed the fears.
A spokesman for DSG told Mobile: ‘We're not surprised by the announcement - We know Best Buy's business and we know they were wanting to enter the UK market. They clearly believe as we do that this is an attractive market, and their entry validates our strategy as well as the importance of the specialist electrical retailer. It also shows they are not concerned about the threat from the internet.’
He added: ‘We start from a much stronger place, i.e. we are the market leader in many of our markets, certainly in the UK, we already have a large store network, we already have a substantial internet business, and we already have the service and delivery infrastructure in place, which is difficult and expensive to replicate.’
DSG’s new CEO, John Browett will outline the company’s strategy next week.