Dixons to quit high street for online

Electrical retailer Dixons is to disappear from the high street and switch to Internet retailing, with its 190 stores changing to the Currys.digital brand, owner DSG International said today.

Currys will become a 550-strong chain of stores in the process, while Dixons will build on its 50 percent year-on-year Internet sales growth over the last four years.

"Customer buying behaviours are developing with the growth in broadband usage," said Chief Executive John Clare.

The conversion of Dixons stores to Currys.digital is expected to start in early May, said DSG, which also owns PC World and mobile phone store chain The Link.

"It's a good move, but we're still negative on all electrical retailers, as they're suffering price deflation and more and more competition from online retailers and supermarkets," said one analyst.

"And this will only increase the degree to which Dixons online sales are cannibalising stores sales," he added.

The anticipated 7 million-pound cost of the programme will be provided for in the current financial year ending April 29 and the process is expected to deliver annual savings of around 3 million pounds.

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