Consumer electronics retailer DSG International today announced plans to speed up the opening of "megastores" and combined PC World and Currys outlets.
The company, which trades as PC World and Currys in Ireland, will reformat 100 stores in the UK and Ireland this fiscal year, including creating 25 new megastores, which typically have more than 35,000 square feet of selling space. Sixty stores will combine the Currys and PC World brands under one roof, trading under a joint brand name.
DSG said earnings at the stores in the UK and Ireland that have already been reformatted rose 20 per cent in the six months to March 6th. In January, the company said the redevelopment programme would create 100 jobs in Ireland.
Chief executive John Browett has upgraded one-third of the company's stores since 2008, adding improved ranges and contemporary design. The retailer's moves come as revenue is under threat from the internet, supermarkets such as Tesco and US electronics firm Best Buy, which plans to open two large-format stores in the UK this spring.
"The positive trading implications from the restructuring in our view gives scope for earnings upgrades," Freddie George, an analyst at Seymour Pierce, said. He has a "buy" rating on the stock.
DSG rose as much as 3.4 per cent in London trading, and was up 3 pe rcent at 35.8 pence, its highest intraday price since January 19th, at 9.40am. The shares have fallen 1.8 per cent this year.
Additional reporting - Bloomberg
