NEWS: Currys.digital shops set for closure

Thu, 15 May 2008, 12:22pm

Currysdigital

DSG International is set to close 77 of its 177 Currys.digital shops over the next five years. This isn't just so DSG can have a round 100 stores, but is in fact an attempt to trim the company's costs by £50m.

John Browett, DSG's chief executive, said: "Customers have become increasingly promotion and deal driven, impacting gross margins." Damn you deal-finding consumers!

The announcement came as DSG reported a 1% rise in like-for-like sales for the year up to 3 May. Despite this, the company's shares took an 11% tumble at the news of the planned shop closures.

Earlier this year the company issued two profit warnings, blaming the credit crunch for a challenging trading environment.

On the plus side, existing Currys.digital, Currys and PC World stores will be getting a new lick of paint in the transformation process.

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Comments

Unfortunately, with the international economic woes on the horizon, this is just the beginning.  Consumer Electronics will be taking a fierce beating over the next 3-5 years until confidence returns and energy prices stabilize.

The CE market is actually continuing to grow very healthily, despite economic conditions, This is more about the shift to online retail for mass-market CE products, IMHO....

I think this decision is long overdue, as I've never had a pleasant experience shopping there. Their sales staff are among the worst I've encountered and their products are not competitively priced. So, it's about time.

I recently bought from them online, 1st order was faulty so I returned it, they then sent me 2 replacements and refunded me twice. I don't mind but it can't be good business for them giving away over £200 of products for free!!

Agreed, Curry’s demise merely confirms that UK punters prefer keen pricing, a bit of courtesy & knowledgeable sales staff – what a radical concept! I was once conned by one of Currys' staff re a £900 LCD TV (I was very, very naive re DVI/HDMI/upscaling etc). When I phoned Trading Standards for advice, the initial response was: ‘Lies from Currys’ staff? Not again!’ It would be sooo tragic if the whole business went under. I’ll gladly dance on Currys’ funeral pyre. Karma rules!