5th Apr 2006 08:00
DSG International PLC05 April 2006 PR16/06 RNS Embargoed until 8.00am BST, 5th April, 2006 DSG INTERNATIONAL PLC ANNOUNCES ENHANCED MULTI-CHANNEL STRATEGY FOR ITS UK ELECTRICAL OPERATIONS AND BRAND PORTFOLIO DIXONS TO FOCUS ITS BRAND POWER ONLINE CURRYS TO BECOME 550-STRONG NATIONAL STORE NETWORK DSG international plc, Europe's leading electrical retailing Group, todayannounces a significant change in the channel strategy for its UK electricaloperations and brand portfolio. The Dixons brand will focus exclusively on e-commerce operations to deliver aleadership position in specialist electrical e-tailing. Dixons' existinge-commerce operation has recorded on average more than 50% year on year salesgrowth over the last four years. The Group will extend the Currys brand into allexisting Dixons High Street stores, increasing the product range available tocustomers and leveraging Currys' operational and promotional power. The changes will enable Currys and Dixons to more clearly differentiate theirapproach through two channels to market (retailing and e-tailing), deliveringimproved levels of convenience, choice and value for customers. All 190 existing Dixons High Street stores will be rebranded "Currys.digital",and will offer customers a wider range of products and services, including majorand small appliances, whilst retaining a strong focus on digital technology. Thestores will also offer customers the convenience of additional Currys locations. The cost of this programme, expected to be approximately £7 million, will beexcluded from underlying earnings and is to be provided for in the currentfinancial year ending 29th April 2006. The changes will also deliver annualsavings of around £3 million in central costs. John Clare, Group chief executive of DSG international plc, said: "I am veryexcited about the prospects for the Dixons brand as a pure play e-tailer.Customer buying behaviours are developing with the growth in broadband usageand, as a Group, we constantly adapt and innovate to support how our customersshop. Customers of both brands will have greater opportunity to buy what theywant, where they want and how they want - backed by our commitments on price,range and service. DSG international's market leadership is due to our successin keeping close to the needs of our customers, keeping close to the latestdevelopments in consumer technology and leading the market in innovation. Withthese changes we now intend to become the most successful electrical retailer onthe web, alongside our leadership position in bricks and mortar electricalretailing." The initial conversion of existing Dixons stores to Currys.digital is expectedto start in early May. All staff currently working within Dixons stores areexpected to transfer to Currys as part of the process. - Ends - More information: Media Hamish Thompson Director of media relations 01727 203195 / 07702 684290 DSG international press office 0845 6090805 Billy Clegg Financial Dynamics 020 7269 7157 Caroline Stewart Financial Dynamics 020 7269 7227 Investors David Lloyd-Seed Director of investor relations 01727 205065 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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