Property Week reports that DSG International is to introduce a new format to the UK, which will be similar to its eastern European Electro World brand.
The retailer, known in the UK for its Currys and PC world stores, is planning to trial a new format in an existing store in the UK and aims to be trading by Christmas in the unrevealed location.
The concept, unnamed at present, is described as a “˜bigger, better Currys’ that will offer all electrical equipment under one roof, in the manner of its Electro World chain in Greece, Turkey and central Europe.
DSGi has been struggling against online competition for electrical goods and US electrical chain Best Buy’s plans to start opening UK stores ““ following its merger last month with Carphone Warehouse ““ is likely to compound this.
The retailer has already issued two profit warnings this year and chief executive John Browett has been forced to make wholesale cutbacks in an effort to turn the chain around.
Last month he announced the closure of 77 of its 177 Currys.digital high street stores as part of a refocus of the brand. The review suggested a raft of cost reduction plans, among them cuts at head office to reduce costs by £50m in 2008/09.
Analysts said the review amounted to a third profit warning and cut pretax forecasts for 2008/09 to as low as £135m.
If the trial is successful, DSGi could roll out the format to new locations and existing stores. DSGi said the new format would trade in stores of 30,000-50,000 sq ft.
DSGi also plans to test a new, more digital product-focused format in five existing Currys stores.
Philip Bell-Brown, property director at the retailer, said: “˜We are trialling new formats through conversions of existing stores.
“˜It is better to trial these things with our existing estate rather than open new locations at this stage.’
It is also trialling a new PC World format in Enfield, north London, which it said would feature “˜straightened aisles, clearer signage, and extra bays’ and introduce “˜better ranges, appealing to more customers by increasing the number of key ranges and products in store by almost 50%’.
A new format will also be tried out on one Currys.digital store, which will have “˜improved ranges and provide technology for taking out white goods and desktop computers’. CB Richard Ellis is advising DSGi on the high street; Wilkinson Williams is advising on out-of-town disposals.