DSG International set to announce fight back plan
DSG International, the owner of PC World and Currys, is expected to announce its turn-around strategy this week. The move aims to fight the potential threat from the Best Buy deal with Carphone Warehouse announced last week.
The announcement will be made by chief executive John Browett as the first stage of a turnaround plans following its second profit warning in under four months in April.
It follows the announcement of a joint venture between the world’s biggest electronics retailer Best Buy with Carphone Warehouse Group.
DSG has blamed its woes on the tough economic conditions forcing UK consumers to tighten their belts and that customers have become increasingly promotion and deal driven, impacting gross margins.
PC World is already under pressure from Carphone Warehouse, which has started offering “free” laptops in exchange for a £19.99-a-month broadband subscription. The new venture is expected to lead to a increase in similar deals.
Browett will outline his new strategy on May 15.