Closure of 77 Currys.digital stores
Seventy-seven of the 177 Currys.digital high-street outlets currently trading are planned to close over the next five years as leases expire. DSG Int. is embarking on a five point revival plan (PDF) and hopes to cut operating costs by £50 million over the next two years. The re-organisation includes includes economies at head office and store refits at Currys.digital, PC World and Currys.
These measures are all part of the gathering gloom over high-street trading and indeed another part of the revival plan deals with strengthening and expanding the group's on-line business, which achieved 1 billion pounds in sales in 2007-2008. The PIXmania trading platform will be rolled out across all the group's internet sites by end of 2008.
According to DSG's new chief executive John Browett "Customers have become increasingly promotion and deal driven, impacting gross margins". Mr Browett expects that over the next three or four years the internet side of the business will increase to 30 per cent from its current 10 per cent share of the UK electricals market.