DSG International is renaming itself Dixons Retail, which is an eminently sensible move
DSG International announced its full year results this morning, and amid what was a respectable set of numbers showing genuine signs of improvement, it was interesting to see that the group plans to rename itself Dixons Retail.
Changing the corporate name from Dixons Stores Group to DSGi was one of the last acts of former chief executive John Clare, in recognition that very few of the group’s stores either here or overseas traded under the Dixons name, but in the business world, with suppliers, and indeed in Hemel Hempstead where it has its HQ, the name still has real resonance, as it should as it’s one of the great names of UK retailing.
On the more substantive stuff, John Browett’s transformation plan certainly seems to be gaining a bit of traction. It’s no wonder because the new stores are a big improvement and even more importantly the service is much better. In tomorrow’s issue we’re running a mystery shop which we did of the main electricals retailers in the advent of Best Buy’s arrival, and both the main DSGi chains came out much better than they would have done a few years ago.
There are still massive challenges facing the sector in the years ahead, and the computing market remains weak. Sales in the UK computing division took a hammering - down 13% - and the miniscule margins in the electricals sector and stiff competition from online, the supermarkets and Best Buy will continue to keep Browett on his toes.
But after a tricky start when it sounds like there were a lot of difficult conversations needing to be had in Hemel, the super-brainy Browett is clearly having an impact and he’s got DSGi on the right lines. There is a massive battle going on for the UK electricals market at the moment and I’m not sure all the participants can pull through unscathed. But I think that DSGi will.
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