Britain's biggest electrical goods retailer Dixons is to close a third of its 320 stores in the next three months as losses at the chain mount and sales continue to disappoint.
But the group's other businesses are performing in line with expectations, helping boost the shares on a soft London market.
The retailer said it was on target to meet profit expectations for the financial year just ended, but would take a £48 million exceptional charge to pay for the store closures. The restructuring should enhance earnings in the next year, the company said.
All the 106 Dixons stores facing closure are loss-making, a spokesman said. The retailer is searching for a more profitable format, which could include a shift to bigger premises in lower rent locations.
"Dixons performance since Christmas has worsened," a company spokesman said. "We still believe there is a future for Dixons on the high street but we have got some work to do."
The retailer, which owns about 1,400 shops in 12 countries across Europe, is facing fierce competition in electricals at home from the likes of catalogue retailer Argos, supermarkets like Tesco, and online retailers.
About 1,000 staff will lose their jobs, representing 2 per cent of total group selling space, but most will be redeployed and the retailer expects to create more jobs than it cuts in the current year.
Dixons Group also owns electricals retailer Currys, mobile phone chain The Link and PC World.