As two foreign competitors announce major UK launches is the future grim for DSGi?
We've been living in a pretty dire big box situation for years now. The electronics market has been pretty much dominated by DSGi with their Currys, Dixons and PC World sub-brands. The major competition has come been from the other big player Comet but in reality they have not offered an aggressive fight in either customer service or pricing.
The fight is just about to start though. Best Buy have joined up with CPW and have just confirmed a major launch of over 100 stores. These big box stores will be similar to the US counterparts with over 30,000 square feet of electronics and computing.
This offline attack is combined with a renewed battle in the online front. French giant CDiscount is preparing an imminent UK launch where it will fight for a piece of the online spend against DSGi, Comet, Amazon and Play.com.
So is the future grim for DSGi? Considering they announced in September that like-for-like sales had dropped 7% in the UK and Ireland it does not look good. Although the DSGi brands have been quick adopters in the online space they have not enjoyed the same reputation for pricing as rivals Amazon and Play. This reputation combined with the attack on the high street from Best Buy does not bode well.
From a consumer perspective it looks like we may all have a very good 2009! Best Buy is an aggressive price leader in the US and there is no doubt they are going to work hard to beat the UK incumbents on both the price point and service levels. It will be enjoyable to see Comet and DSGi scramble to fight for our electronics and computing spend.