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Currys.digital to go the same way as Dixons?

Tom White

15th May 2008

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The move is designed to save £50m in costs. DSG’s shares have fallen by about 10% on the news, following shortly after two profit warnings this year. The environment on the High Street is looking gloomy as cash-strapped consumers struggle with higher inflation, especially in their food, fuel and energy payments.

The BBC report DSG’s boss saying “Customers have become increasingly promotion and deal driven, impacting gross margins”. Industry insiders expect that the internet will take 30% of the UK electricals market over the next three or four years, compared with the 10% it currently accounts for. The outlook for DSG isn’t great.

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Tom White

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