Dixons has just announced its moving out of the High Street and is focusing only on e-retailing.
In short, they are:
1) moving into an area where it's almost impossible to differentiate (and at present only accounts for a tiny percentage of sales)
2) re-branding all existing stores and presumably reducing space devoted to personal electronics and increasing space for white goods - a Currys/Dixons mix.
This won't save the group any money as existing stores will continue to trade under the new Currys Digital name.
I have two questions:
a) Are they effectively giving up on the Dixons brand? E buyers only care about price, not reputation.
b) Can The new Dixons/Currys store format remain profitable given that no stores are closing?
In my view their best strategy would have been to stick with the 'bricks and clicks' format and possibly close smaller high street branches and focus instead on fewer large out of town outlets.
Is anyone as bewildered as I am?
