Exclusive: DSGi stops offering in-store credit to customers
In the same week that Best Buy opens its first UK outlet, Bitterwallet has learnt that all DSGi stores - Currys, PC World and Currys Digital - will not be able to offer payment plans for purchases, for up to six weeks. Two sources at the electrical retailers have independently confirmed that customers will not be offered credit for the time being, after the company's retail sales agreement with HFC Bank was ended.
In other words, all goods bought at DSGi stores must be paid for in full by the customer at the tills, until the issue is resolved.
According to our initial source, a member of staff at PC World, an internal memo was circulated on the company intranet stating it would take up to six weeks to be able to provide credit through a new provider; upgrades are required to the Eclipse till system used in DSGi stores, and staff will need to be retrained to use the new online systems.
A member of staff at Currys Digital has since confirmed the story, stating that after trading ends today, the retailers will only be able to accept payment in full for any goods purchased, and that this would be the situation "for at least four weeks, until the new credit proposition is in place."
The implications for DSGi are serious; the company will lose a substantial amount of its revenue normally derived from credit agreements, on top of consumers deserting their stores in favour of the likes of Comet and John Lewis, where they can still purchase larger items on credit.