PC World and Currys - everything is great, nothing to see here
Worried about the recession putting you out on the street and the high street out of business? Don't be! Everything is ok and there's absolutely no need to panic whatsoever. Says who? John Browett, chief executive of DSGI - that's who! After the release of DSGI's latest trading statement, Browett told The Times that DSGI is “seeing some evidence that, in fact, it’s not going to be quite as bad as some of the more pessimistic economic scenarios” and that consumers were displaying renewed confidence by “trading up” to mid-priced ranges:
“Given the challenging environment, this is an encouraging start to the year... we remain cautious about the economic outlook. However, we are making good progress on our renewal and transformation plan to deliver an unbeatable combination of value, choice and service for our customers.”
So good news, there - PC World and Currys are perfectly positioned to ride out the recession, and any reports of savage cost-cutting and restructuring behind the scenes is all coincidental. So what did DSGI's trading statement say that has restored so much confidence and fighting spirit? Just take a look at those numbers:
- a 6% fall in like-for-like sales in the four months to August 22, excluding the cost of new stores
- growth of sales of electricals in the UK and Ireland down 14%
- growth of sales of computers in the UK and Ireland down by 15%
- DSGI disposed of its business in Poland for €1: "The Polish market should have been a great market for us. We would probably have had to open 50 stores. That scale of investment wasn’t possible."
That's the sort of good news you just can't buy, although if you could you'd also have to buy a set of gold-plated scart leads passed to you with both hands by a DSGI employee.