Administrators of the beleaguered Powerhouse chain have blamed much of the retailers woes on increased competition from e-tailers.
“Internet retailers and increased competition on the high street, coupled with the ongoing deterioration in the UK electrical retail market, has led to Powerhouse being unable to sustain its position in the retail marketplace,” BDO Stoy Hayward said in a statement.
Powerhouse’s owner, New Zealand-based Pacific Retail Group placed the group in administration after a board meeting on Tuesday last.
The firm’s 50 stores in England have been shut, following the closure of 27 Scottish based outlets which were closed in February of this year.
The Dixons brand has also recently moved online, closing many high street outlets while renaming its remaining high street shops “Currys.digital” in a bid to stem falling sales.
Curry’s is better known for selling whitegoods and other larger appliances while Dixons stores have traditionally focused on consumer electronics devices, such as digital cameras and MP3 players, which are better suited for internet sales.
Other major retailers are seemingly catching up with some of the early pioneers of internet selling with some trraditional “bricks and mortar” retailers such as DSG (Disons Stores Group) buying successful online businesses to try and compete in this area. With over 60% of the nation now online it is hardly surprising that the traditional retailers want their slice of this burgeoning marketplace and are trying to grab it whilst they can.