DSGI rethinking French strategy

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23 February 2007 — High Wycombe (UK): DSG International (DSGI) has begun a consultation process for the reorganisation of its French operations.

The company says that promotional restrictions in the country and the competitive property market make it increasingly difficult to achieve scale, in terms of store numbers, and brand awareness.

 

As such the retailer plans to eliminate significant on-going losses being racked up by PC City France. A possible solution being considered is the closure of the 11 PC City stores and a change of focus by concentrating on the sale of computing products in the country through the group’s eCommerce division.

 

The consultation is expected to be completed by July.

 

Last month the company opened two new PC City stores in the Spanish cities of Lerida and Barcelona, stepping up its presence within the country to 28 stores. DSGI has said that it will increase this number to 34 by the end of the year.

 

In a speech yesterday to the IPD/CBI Property in Business conference, DSGi’s CEO John Clare predicted that the percentage of products that the company sells online will grow from 12 percent this year to 20 percent within the next three years.

 

He also said that as online retailing continues to grow, retailers’ space requirements will "substantially reduce".