DSG International, which owns the UK High Street electronics chains Currys.digital and PC World, has announced that it will phase out 77 of a total of 177 Currys.digital stores over the next five years as their leases expire, even as DSG reported a 1% rise in like-for-like sales for so far this year.
But the company is hoping to cut costs by $100 million over the next year and has already issued two profit warnings, even as its chief executive John Browett said that predictions will be hard to make in the tighter economic climate. He told the BBC,
"Customers have become increasingly promotion and deal driven, impacting gross margins."
Shares in DSG closed 7.5% lower after the news. DSG’s news comes just days after Best Buy announced a deal with Carphone Warehouse to expand into Europe. This news indicates they might face an uphill battle in establishing themselves.
