Dixons Store Group Plunges £30m Into The Red

27 November 2008

http://img116.imageshack.us/img116/918/pcworldrex175x125550194cw3.jpgAs we watch the demise of both Woolies and MFi, doubts about the future of two further high street chains have been brought up today.

PC World and Currys, both subsidiaries of DSG International, remain in 'tough and volatile' trading, after the owners plunged £30 million into the red, posting underlying losses of £29.8M in the 6 months following up to last month, a rather stark contrast to the £52.4M profit last year. 

DSGi have announced that they are going to axe their dividend in view of the weak trading in the UK, Central Europe, Ireland, Spain, and Italy.  The decision was made to 'preserve liquidity', hoping that the 2% reduction in interest rates would help improve their sales.  Sales of computing products fell by 11% in the UK, with electrical goods down by 7%.

[Register]

TOPICS:   Games

7 comments

  • Dank
    Good. I can't stand the DSGi and the day they go under will be a happy day on the High Street!
  • Ralston P.
    So seeing tens of thousands of people lose their jobs makes you a happy man. The day you go under a bus will be also, a happy day.
  • Vince V.
    LOL. But not necessary for Dank to go under the bus! DSGi in our initial surveys was voted as one of the worst UK companies. I actually do agree with Dank that most of these stores do need a good changeover and redoing. I doubt that they will actually 'go under', and still have plenty more stocks to liquidate... what I hope is that as Phillip Green transformed TopShop and Arcadia, someone wanting to create change will buy them out and make positive transfomation much overdue. But I also feel from Ralston's perspective that it would suck for the poor employees. Rumour is that they will still be employed up through to the holiday seasons no matter what and business will continue as usual. What do you guys think? Will there be a takeover? By who? Will it change things?
  • Dank
    So seeing tens of thousands of people lose their jobs makes you a happy man. The day you go under a bus will be also, a happy day.
    Jesus wept! omeone got out of the wrong-side of bed this morning! I worked in PC World a number of years ago and the way they treat staff is appalling. Yes I feel sorry for the humble shop-worker if they lose their jobs, but anybody higher has it coming to be honest. With money low circulation at the moment due to the country going down the economical-pan, the customer is king. The DSGi can't continue to go round treating them like they have done since their conception in trying to flog various warranties for five years which aren't worth the paper they are written on etc. I feel it's about time they got their comeuppance.
  • Rich
    I'm so glad they're having difficulty. About time, too. I remember chuckling at the irony on seeing the poster in the staff room of the Chariman, Sir Stanley Kalms, claiming 'integrity is easy'. DSG are a disgrace. The worst place I've ever worked, without question.
  • simonb
    I blame the people at the top. No matter what the problem it's these people that steer the company though the storm. it's not the shop floor staff that decide on training, web presence or online prices. If their not knowledgeable then it's management that should have sorted it out. if it's declining market it management that could steer them to something new. It's a bit harsh when people blame the staff for management inability to do its job. Now a days it comes down to price and if it's cheap there i buy there. if not i shop online somewhere else. With their buying power they should be competitive but very rarely are.
  • Deathwatch B.
    [...] We’ve been speculating over the fate of DSGi for several weeks, and then there was the news that the parent group of Currys and PC World had posted a Q2/Q3 loss of nearly £30million. [...]

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