DSG makes Dixons internet brand, renames stores as Currys.digital |
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Wed, 05 Apr 2006 15:25
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LONDON: Electrical retailer DSG International Plc. is rebranding its 190 Dixons high street stores as Currys.digital and converting the Dixons brand exclusively for e-commerce operations, the company said Wednesday.
The change of Dixons stores into Currys.digital is expected to start in May and there will be nearly 550 stores, offering a wider range of products and services, including major and small appliances, with a strong focus on digital technology, a company spokesperson said.
The Dixons brand will focus on e-commerce operations to deliver a leadership position in specialist electrical e-tailing, the spokesperson added.
DSG's chief executive John Clare said customer buying behaviours are developing with the growth in broadband usage and, "as a group, we constantly adapt and innovate to support how our customers shop".
All the staff currently on the rolls of Dixons will be transferred to Currys.digital, the company said. It expects to incur an expenditure of around 7 million pounds in this exercise, which will be provided for in the fiscal ending 29 April 2006. The changes are expected to have cost savings of around 3 million pounds annually.
DSG also owns PC World and mobile phone store chain, The Link. These will not be affected by the change.
U.K. sales of Hemel Hempstead-based DSG have been hit with consumers shifting to online stores like Amazon.com and supermarkets including Tesco. The company had closed down 106 Dixons stores in 2004.
The Dixons website draws around one million customers every month and it had a 50 per cent increase in sales on an average in the last four years.
DSG, with operations in 14 European countries including France, Sweden, Italy and Hungary, had bought Currys Group in 1984.
DSG shares rose 0.5 per cent to 185-1/2 pence, valuing the company at around 3.4 billion pounds.
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