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PC World and Currys owner DSGi smashed City forecasts over Christmas, allowing ex-Tesco man John Browett to give evidence that his shake-up of the business is working.
The company, which is also behind Dixons, had like-for-like sales up eight per cent in the 12 weeks to 9 January, a result that far exceeded analysts' predictions of three per cent.
The numbers are the first real indication that Mr Browett's overhaul of a company once seen as flirting with extinction is on track. He is halfway through a three-year plan to ensure a better quality of service that will allow it to compete with John Lewis and arch rival Comet.
Mr Browett said: “This is a company with a great heritage and a fantastic set of people. But the business had been driven by price and promotion. We are changing it to what customers want — value, choice and service. They expect someone to be there to explain the technology.”
Total sales rose 11 per cent over the period, with the Nordic arm in particular enjoying a boom. Sales there were up 18 per cent.
Analysts today upgraded profit forecasts for the year. Credit Suisse added £15 million, betting DSGi will make £100 million in 2010.
Mr Browett plans to expand PC World with scores of new stores planned, but declined to elaborate on this ahead of a spring announcement.
A warning that the economy could be another difficult one for consumers kept the shares in check today, but at 36¼p they are far above the 7p low reached in December 2008.
DSG sold a computer and TV set every two seconds over Christmas, and all the megastores reported sales over £1 million each in the first week of the sales.
“We feel that what we have done is starting to manifest itself, but there is still a huge amount to do. We can't control the overall market,” said Mr Browett, who surprised many when he chose to quit Tesco two years ago to join DSGi.
Reader views (1)
I am sorry to say but something should be done about this groups monopoly within the UK. On the high street as it were, the Dixons group is pretty much the only choice - Comet and perhaps John Lewis aside - who I am sure price fix with them and stock differe machines to keep price promises. They price fix pc's and other electricals between them. The level of technology in a pc supplied at say the £1k mark can be found elsewhere for less than £500. Some sort of consumer watchdog needs to get on to this!
- Disgruntle, Brighton, 14/01/2010 16:35
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