ELECTRICAL retailer Dixons is to accelerate its testbed move into new, larger stores in the second half of this year as it seeks ways to counter the rising tide of competition from supermarkets.
John Clare, the group chief executive, said Dixons had four of the new stores now – of 30,000sq ft and upwards – in Cardiff, Swansea, Birmingham and Hull.
He said: “We will open around another half a dozen later this year, but I can’t say where at present. If these are successful, and to date we are encouraged, we would anticipate this being the way forward for the Dixons chain.
“It’s true that if they are successful, and we are encouraged to date, we see Dixons developing into bigger space stores, with probably fewer stores. As we open bigger space, we will close smaller outlets over time.”
Clare said Dixons had to see where it could establish competitive edge as supermarkets and general retailers such as John Lewis and Argos moved more into its electricals patch.
The company currently has nearly 320 stores.
Clare’s comments came as Dixons unveiled a strong Christmas trading performance than the City had expected.
The group, whose other brands include Currys and PC World, said that like-for-like sales rose 5 per cent in the eight weeks to 10 January.
The rise in the UK was 4 per cent and 7 per cent in the international division. Best-selling products included DVDs, flat-screen televisions and digital cameras.
The strong Christmas trading performance contributed to interim pre-tax profits advancing to £103.4 million (from £94.8m last time).
The interim dividend is boosted 10 per cent to 1.660p (from 1.510p).
From The Scotsman