Dixons' superstore chain to grow to 130

Dixons aims to build a chain of 130 xL superstores - four times as many as originally envisaged - and is experimenting with size and type of location.

The electricals market leader launched its first xL store in Cardiff a year ago, and has since opened outlets in Swansea and the Bullring.

A fourth opens at Doncaster this autumn. At 10,000 sq ft (930 sq m) it will be less than half the size of the 26,000 sq ft (2,415 sq m) Cardiff original, but almost four times bigger than Dixons' traditional shops.

A Dixons spokesman said there are plans for 30 xL shops in big city centres, but there may be scope for 100 smaller variants in other areas.

He said: 'We are experimenting. We are targeting high-traffic, out-of-town and edge-of-prime town locations, as well as city centre stores.'

CSFB analyst David Jeary said: 'This move would mean a significant restructure in the balance of Dixons' location strategy. It is doing this to engineer a business model with a lower cost base that would offset price deflation (in the electricals market) and the high cost of rent for small stores.'

Sales at the Bullring xL hit£2 million in its first six days, where Dixons is showcasing its Science Museum range.