Dixons Kaput?

[ken_ichikawa]

http://www.channelregister.co.uk/2011/04/14/dixons_swedish_future/

http://ftalphaville.ft.com/blog/2011/04/13/545016/rebranding-dixons/

Another highstreet jacket to hide the empty retail units?

[monks]

I re-branded it years ago... as my cheaper internet dealer "look, touch & feel" showroom !

[yellerkat]

From your first link:

Morgan Stanley ... noted that DSG has an annual rent bill of £220m, which is three times its annual underlying profits.

I think I see the problem (apart from the spotty yoofs).

[@contradevian]

The rentier's have to be fed.

[mattyfc]

http://www.channelregister.co.uk/2011/04/14/dixons_swedish_future/

http://ftalphaville.ft.com/blog/2011/04/13/545016/rebranding-dixons/

Another highstreet jacket to hide the empty retail units?

Agree with MS, no need for Dixons / Brands anymore. The whole sector is moving online, so easy to compare prices for electrical goods how can Dixons compete? Not sure why anyone would go other than for an emergency purchase.

[A.steve]

I've noticed, of late, that - for the first time I can remember - Dixons/PC-World are offering very competitive prices on several items of tech-kit I'm considering buying.

For example, Dixons has an Acer laptop for <£500 that Acer-Direct (cheapest by ~10% until recently) is offering at £575. A 2TB external drive came in at a couple of quid less than the cheapest internet deal I could find.... I find this remarkable... for the first time I can recall, DSG are competing on price. Their margins must be very tight - especially as I often see huge superstores with more staff than customers.

Edited April 14, 2011 by A.steve

[Ash4781]

I see they announced a withdrawl from spain! Adios!

[scrappycocco]

This was the sell and run business model they were following all along. If your going to have really bad after sales eventually no one will come back.

[Guest sillybear2]

They shuttered a lot of their high street outlets years ago to concentrate on out-of-town, obviously that's paying off well now the cost of petrol is hitting new highs.

[OnlyMe]

The rentier's have to be fed.

Not with my money they won't. I avoid every high street shop I can - I can see link link between the ponzi schme runing right though land / housing / retail space.

[Dave Beans]

They shuttered a lot of their high street outlets years ago to concentrate on out-of-town, obviously that's paying off well now the cost of petrol is hitting new highs.

Indeed, my local town had a Dixons in the centre until that was closed. We now have just a PC World and a Currys on out of town estates. If they are determined to have a presence, why not just merge the two together and put them into the same space?

[mikthe20]

This was the sell and run business model they were following all along. If your going to have really bad after sales eventually no one will come back.

+1

Got sick of them trying to sell insurance every time I bought something - I bought a £20 device there once and they tried selling me insurance for £18! Short termist management - "squeeze the customers now, turn them upside down and empty their pockets, give them crap service, I won't be here when the SHTF anyway". Might as well buy online as in-store was actually a worse buying experience, not better. And no doubt they're wondering why their customers left them.

[Little Professor]

OMG - where am I going to by my sh1tty overpriced Monster cables from now???

Good riddance, I can't wait for them to go bust

[Guest_ringledman_*]

+1

Got sick of them trying to sell insurance every time I bought something - I bought a £20 device there once and they tried selling me insurance for £18! Short termist management - "squeeze the customers now, turn them upside down and empty their pockets, give them crap service, I won't be here when the SHTF anyway". Might as well buy online as in-store was actually a worse buying experience, not better. And no doubt they're wondering why their customers left them.

+2

Exactly. There was no loyalty shown to their customers, hence it is no wonder people never returned.

I don't think I have been to a Dixons or PC world for 4-5 years now.

[hpc-craig]

Agree with MS, no need for Dixons / Brands anymore. The whole sector is moving online, so easy to compare prices for electrical goods how can Dixons compete? Not sure why anyone would go other than for an emergency purchase.

The last time I went in there was for a Printer. I run an online business and mine went up in smoke and I needed it there and then.

The shocking thing was they had about 12 models on the shelf and only 1 model in stock. I apparently wasn't allowed the ones on the shelf either - I assume the staff get their mits on 'display models' and flog them on eBay.

I find them overpriced and the insurance selling is a nightmare only topped by the patronising staff who make no attempt to gauge your level of tech-savvyness and just real off the same script to everyone.

[Executive Sadman]

Im pretty sure the wholesalers offload their crap to dixons/currys. I bought good brands (Toshiba, Sony etc) from Dixons in the past, and all have had faults.

Buy the same things from online retailers, even generic stuff, works fine.

They need to find reputable suppliers IMO.

[General Congreve]

Outdated business model, they are finished in the medium/long term. It will be a shame to see them go though, as it's handy to be able to walk into a store and actually have a look at the goods you're considering buying before ordering them at a cheaper price on the internet.

[jonb]

Indeed, my local town had a Dixons in the centre until that was closed. We now have just a PC World and a Currys on out of town estates. If they are determined to have a presence, why not just merge the two together and put them into the same space?

That is happening in a lot of places.

[planit]

Has anyone got any idea how to get a copy of the Morgan Stanley report?

A whole sector making loses has to result in change.

One problem for the specialists is that Tesco, John Lewis and Argos etc don't mind making loses on their electricals divisions - it gives them good exposure and keeps customers in-house.

One question is do we need shops at all?

There will be a tipping point at which shops have to shut and then everyone will be forced to shop online.

I suppose the main impact would be the job loses if this happens across multiple sectors. If rents fall then this would address some of the problem but it will be too late for any companies.

[edit - spelling and grammar]

Edited April 14, 2011 by planit

[interestrateripoff]

Morgan Stanley ... noted that DSG has an annual rent bill of £220m, which is three times its annual underlying profits.

[ken_ichikawa]

d keeps customers in house.

One question is do we need shops at all?

There will be a tipping point at which shops have to shut and then everyone will be forced to shop online.

Oddly this plays into the cashless society types, in that with cashless societies in effect bank runs are impossible amongst other things, Injin has the full gist of it I forget though.

[pezo]

Oddly this plays into the cashless society types, in that with cashless societies in effect bank runs are impossible amongst other things, Injin has the full gist of it I forget though.

There is no need for cash anymore as far as I can tell.

[Lepista]

There is no need for cash anymore as far as I can tell.

Oh dear - you have much to learn here, Oh newbie one.

Having an independent means of exchange is one of the single most important thing we can have.

[Brave New World]

As much as it will affect the thousands of staff – apart from the tosspots in Harrogate////////GOOD

The See You Next Tuesdays sold us a £180 camera that we took on honeymoon last year and it kept either not working or when it did left us with blurred images. Number of times i wanted to take a picture and it just wouldn’t. Brought one whilst away which rescued things but still lost picture moments.

Went to the branch in Harrogate, with all of the insurance, they did not care one jot about the situation offered like for like or equivalent, no cash refund. And no goodwill gesture at all. Unfortunately for them it then cost them a £600 laptop sale and an £1100 LED TV purchase – of which i informed them, followed by a train of expletives.

[sleepwello'nights]

Outdated business model, they are finished in the medium/long term. It will be a shame to see them go though, as it's handy to be able to walk into a store and actually have a look at the goods you're considering buying before ordering them at a cheaper price on the internet.

Not quite. Their business model is evolving. They own some on-line retail outfits. Not sure whether they intend to rebrand them. Probably better for them not to given the apathy many people have to DSG stores.

Electronic goods manufacturers realise that price sensitive consumers will search out the best price on-line. But there's no substitute for feeling and touching goods. The manufacturers are paying store groups like DSG for displaying their goods. Much like food manufacturers pay the supermarkets for shelf space.

These marketing funds subsidise the retail stores even though the retailers themselves have on-line sales channels.