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 05 July 2008 14:20 BST

Currys owner to close 77 stores

Thursday, 15 May 2008 13:41
PC World owner DSG has unveiled its cost-cutting plan

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Shares in DSG fell nine per cent on the London Stock Exchange after the electricals retailer announced plans to close 77 stores and halve its dividend payment.

The company, which owns Currys and PC World, today unveiled its transformation plan to revive sales.

DSG said it wanted to make £50 million of savings this year and warned shareholders that it would slash its final dividend to 3.43p, from last year's 6.85p.

Out of the company's 177 Currys.digital stores, which were formerly branded as Dixons, only 100 are in areas likely to be the focus for future trading. The rest will be closed when their leases expire, which will be within four to five years, the company said.

The company also revealed estimated asset write-offs of £395 million in the 2007/08 financial year, largely driven by its Italian operation.

Chief Executive John Browett said: "DSGi has many inherent strengths as a leading specialist electrical retailer, including market leading positions and strong supplier relationships.

"However, it has not kept pace with its core customer needs, particularly in the UK.

"There is much to do to improve and simplify the business which will improve the customer offer, make us a better place to work and deliver value for our shareholders."

The Hemel Hempstead-based firm said it had plans to improve its ranges and stores, as well as conquer the internet market.

But the effects of its business transformation plan will not make an impact until next year, DSG said, and 2008 will continue to be challenging.End of story


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