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John Browett, boss of Dixons parent company DSG International, today claimed to be winning the battle for control of the electrical goods market against US giant Best Buy.
The chief executive, who is overhauling the combine which includes the PC World and Currys chains, reckons the Americans are finding it tougher to crack Britain than they expected.
“The UK market is surprisingly tough. What they have done by opening here is to bring more people to the retail parks where we are. People are voting with their feet when they see that our ranges are wider and better,” he said.
Browett dismisses claims that the group has seen its market share slip of late. “We know exactly what the UK customers want and we think we can do a better job than the competition.”
Evidence that he is right comes in today's annual results, which show a once struggling business to be on the mend. Sales for the year to May are up 4% to £8.53 billion, with profits up 61% to £90.5 million.
There is no dividend payment yet. “We eventually will return to paying a dividend but what our investors have said to us is, make sure you have got enough money to renew the business. So they are not pushing for it,” Browett said.
Part of Browett's revolution is to close smaller stores in favour of larger outlets that can combine PC World and Currys. The owner of Currys and PC World will reduce its number of shops to about 500 after finding success with larger stores that combine the chains.
The confusing corporate name, DSG International, is being ditched in favour of Dixons Retail.
Browett says his stores will be the only place apart from Apple selling the iPad, a device that, he reckons, “has gone off like a rocket. It appeals to everyone”.
Supplies are limited, but once Apple increases production sales will soar, he believes.
The former Tesco man, who arrived in 2007 at a company that had lost its way, thinks customers now get superior service at Dixons from well-informed staff. He insists that bored teenagers with motivational issues are a thing of the past.
The share price remains weak, however. Today the stock slipped 0.73p to 26.77p. Nick Bubb at Arden Partners rates them a buy.
