Death-before-lifewatch: Best Buy delays UK store until 2010

6 March 2009

Currys and PC World can breathe easy for a year longer - those hoping to see DSGi get kicked around the room by Best Buy will have to wait for a Harry Hill-esque fight. Best Buy Europe - a joint venture with the Carphone Warehouse - had planned to open in the UK this Summer; those plans have now been delayed until the beginning of 2010.

Is it a case of brown trousers in a declining market? Not according to the American behemoths; it's reported they believe that a launch in the first quarter of next year will maximise the impact on customers and its struggling rivals. Having said that, those precious few months will allow DSGI more time to bed in and establish their new format galacto-stores - large warehouse-sized sites that will rival anything Best Buy will bring to the party.

Best Buy also believes better sites are becoming available during the downturn which, given the current economic forecasts, isn't hard to believe. Still, the delay will be a blow to former DSGI employees looking for employment, and to consumers, who wanted a solid alternative to take their custom to.

[Independent]

TOPICS:   High Street News   Games   Gadgets

12 comments

  • Ross
    Surely, there are hundreds of Woolworths stores available - in town centres, you generally don't get many "better sites" ??
  • Jassen
    @Ross you wouldn't find a Best Buy in a town centre environment, they are absolutely huge. The average Best Buy store in the US is about 1.5 times the size of a 'retail park' PC World. They are the equivalent of every DSGI brand (Dixons, Currys, PC World and The Link) rolled in one.
  • jaysexy212005
    I am not surprised they have delayed the venture into UK. It didn't make sense moving into a new market during the recession. Best Buy will onlt enter the UK when the recession is over.
  • Lumoruk
    "to take their custom [U]too[U]" ... feel free to delete my comment once you've corrected
  • Dirk P.
    Damn, i am going to have to wait another year for my 42" plasma for £10.00. It's not the employees of currys and comet i feel sorry for its the internet companys which are going to fall like a pack of cards once Best Buy arrive on these shores. Who is going to buy stuff on the internet when you will be able to buy cheaper from a shop and get discount for cash on top. I for one will search the internet for all the information needed and then go to Best Buy to make the purchase. i can imagine the faces off the internet sites i visited when they find out i was just wasting their bandwidth before making my purchase elsewhere!!! Dirk
  • Billy B.
    Last comment was made by a co*k.
  • another e.
    the same was said about walmart entering the market,but things didn't turn out as they wanted and they couldn't monopolise the uk supermarket industry ,they were even complaining about the european distribution prices/policies etc.the internet will still be cheaper than best buy when they enter the uk market.they still have to pay staff wages/pay for distribution network,deliveries etc pay for electricity and to recruit the right calibre of staff there going to have to pay decent wages.as for discount for cash that doesn't happen in america the price you see is the price you pay?and they still offer extended warranties(yes did i swear yes extended warranties).also they sell monster cables monster power centres.so yes they'll be ramming that down your throat aswell.so i think you all need to get a reality check before spoating out crap.BEEN THERE!DONE THAT!WORN THE SHIRT!
  • Specialist
    DSGi sees success in renewal plan DSG International has announced plans to create a further five megastores following the success of the flagship branch in Birmingham. Updating on its renewal and transformation plan, the company said that the ten months since the May 15th 2008, when the company announced the plans, had been “a period of intense activity”. The company said that it had re-formatted 60 stores in the UK so far, with 90-120 stores targeted to be reformatted in the UK and Nordics in 2009/10. New format stores delivered average gross profit uplifts of 15% to 50%, and the company said that cost savings of £95 million would be achieved in current financial year. A further £50 million of cost savings have been targeted per year to be reinvested to improve the customer offer. In a statement, chief executive John Browett, commented: “The past ten months have been a period of intense activity for the group, and the results of our new formats show that our plans are working. The store transformation programme in the UK is delivering both sales and margin uplift ahead of expectations, and we are on track with plans to reformat another 90-120 stores in the UK and Nordics over the next 12 months. “While the current economic climate is impacting us in the short term, the good progress we have made with our Renewal and Transformation plan is already making a difference for our customers. This gives us confidence we will come out of the recession stronger and better positioned to deliver a good return for our shareholders”.
  • Honky S.
    Shucks, DSG is one that I actually would like to be rid off!
  • idiot a.
    @ Honky tonk pig swill You want a company to fold? You're an idiot.
  • another e.
    Honky Tonk Pig Swil,Shucks, wrote "DSG is one that I actually would like to be rid off!"ain't going to happen mate stop dreaming.comet and dsgi are going to be around for a long time,they both managed to stay in business in such a competitive enviroment with the likes of the internet/supermarkets squezzing margins but still will be around even during a recession which is likely last another year at least.both retailers have large presence in the european market and as such will weather the storm.also incidently comet is part of kesa group which includes darty of france(their no1 electrical retailer),there earnings are in euro's.so if darty report a drop in earnings with the pound being around the same value as the euro they'll still report higher profits than last year due to the currency conversion!as for best buy why aren't they entering the market before the end of the year say sempember onwards is where electrical retailers start getting busier to the peak which is janaury.there now saying 1st quarter of 2010.this doesn't make sense,they're suffering from the downturn in there own markets thus struggling to put the investment in!so yes sites may be cheaper to buy but then your going to suffer from having lower profits too!
  • loyal c.
    im surprised with the dollar vs pound exchange rate best buys aint using this advantage to buy up land property, they can currently get more property for their money now then next year when the exchange rate straightens itself out well thats unless they already converted their UK budget into pounds and just have it sat in a bank making 0.0000005% interest lol

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