Feeds

What's the score on Dixons stores?

Up to half will shut, says analyst

  • alert
  • submit to reddit

Dixons, the UK's dominant computer and electronics retailer, is "making little or no money" and is expected to shut up to half of its 329 high street stores.

At any rate, that's what retail analyst Tony Shiret of CSFB is telling The Observer. He reckons that the cost to Dixons for its high street presence is up to 15 per cent more expensive per square foot than Next, the clothes retailer, yet margins are 20 per cent lower, due to electronic goods price wars.

Tougher competition from supermarket chains, falling income from warranties, and upcoming rate and rent reviews are all putting the squeeze on Dixons high street performance, The Observer says.

Dixons says Shiret's analysis is "speculation". The company is currently trialling a bigger retail format, called Dixons XL in four city locations.

The group also owns PC World, and The Link, the mobile phone retailer. It publishes financial results on Wednesday, Jan 14. ®

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.