Dixons Retail the owner of PC World and Currys is expected to close as many as 100 locations. Dixons has already closed 50 stores in the past year but it is believed that the company plans to close even more stores in an effort to cut costs.
The news comes from Proactive Investors, which reports that the PC World and Curry’s parent company is aiming to reduce the number of UK locations from 557 to between 400 and 420.
Dixons once had had a total of 700 locations when it was at its peak.
The Telegraph quotes the CEO of Dixons Retail, Sebastian James, as saying the dynamic of the high street is changing, and that the high street is no longer the place for retailers like Dixons.
“The high street will no longer so much be for players like us, it’ll be for restaurants and leisure. I really hope they can be fun buzzy places, but they might not be where people go to shop,” he said.
“Against a tough economic backdrop, we have continued to deliver on a clear plan to transform the business,” said Sebastian James, chief executive. Today we are setting out our three strategic priorities to further improve our market position and build a business that is stronger, more profitable and sustainable.
“Our service-led business model, now underpinned by the launch of Knowhow, is increasingly valued and trusted by our customers and our suppliers. The new financial year has got off to a good start with the trends seen in the final quarter of last year broadly continuing. However, we continue to plan cautiously and manage costs aggressively. Our business is well-positioned for the year ahead.”
Dixons also reported financial results, with group like-for-like sales falling 3% for the year, but up 5% in the final quarter. The 3% decline put like-for-like sales at £8.19 billion (compared to £8.15 billion last year). The company saw growth across most markets, particularly in the UK and Northern Europe. Total pre-tax losses were listed at £118.8 million, compared to pre-tax losses of £224.1 million for last year.
Dixons plan is to cut the number of its UK stores, especially on high streets, as it brings together online and store sales in a multichannel strategy.
Dixons trades in the UK under the pureplay brands Dixons.co.uk and Pixmania.co.uk, and through multichannel brands Currys and PC World, and says it will work towards bringing its store and online formats together by developing its website further, introducing a pay&collect service and taking the internet into stores in order “to offer customers the full range of product regardless of their preferred location.”
Presenting its full-year results this week Dixons Retail said that driving “a successful and sustainable business model in a multichannel world” would be a key part of its future strategy. “The way in which a customer shops is fundamentally changing,” it said. “Our customers tell us they want advice, to experience products and to ensure they are making the right choices, particularly as these are often major purchases they will own for several years.”