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Dixons bids farewell to high street

05/04/2006

Electrical retailer Dixons has announced that it is withdrawing from the high street after almost 70 years of trading in order to focus on internet sales.

DSG group, which owns the high-profile retailer, has announced that its 190 UK stores will be re-named under the Currys brand, with Dixons becoming an exclusively online retailer, in a move which is expected to cost in the region of £7 million.

Europe's largest electrical retailing group believes the rebranding exercise will help to deliver annual savings of around £3 million, as well as differentiating between its two main brands, Currys and Dixons, which at present both trade on the high street.

John Clare, DSG group chief executive, is confident that the refocusing of Dixons as an online retailer will prove a success.

"I am very excited about the prospects for the Dixons brand as a pure play e-tailer," he 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.

"Customers of both brands will have greater opportunity to buy what they want, where they want and how they want - backed by our commitments on price, range and service.

He added: "With these changes we now intend to become the most successful electrical retailer on the web, alongside our leadership position in bricks and mortar electrical retailing."

DSG will begin the rebranding of its high street operations in May, with all current Dixons stores renamed Currys.digital.

The retail group does not anticipate any store closures or job losses as a result of the transition, with all current Dixons staff expected to transfer to the new Currys.digital stores.

Last year, DSG saw profits slide by almost 20 per cent to £106.1 million, largely as a result of disappointing high-street sales. By contrast, Dixons' online sales have grown by more than 50 per cent year-on-year since the launch of the website four years ago.

Shares in DSG rose marginally on the back of the announcement this morning, up 0.75p to 185.25p on early trading.

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