Bewildered-by-Business

In response to:Dixons - leaving the High Street - What are they doing?

2006-04-10T11:09:32+02:00

I think you're right. I just can't see how the new format will be profitable. Maybe they are planning to focus on white goods. Time will tell ...

In response to:Dixons - leaving the High Street - What are they doing?

2006-04-07T10:58:19+02:00

They're already sinking fast and this will send them further.

Simple marketting trick, make your name quick and eas to say, how much of a mouthful is Currys dot Digital, the official new name.

Also if they're hoping for web sales they're sadly mistaken, when they will try as much as possible to stick to the same pricing structure as the stores they'll continue to be undercut by Amazon etc for electronics.

The only hope they have is white goods, something I would suggest isn't as widely available online as electronics.

In response to:Dixons - leaving the High Street - What are they doing?

2006-04-06T15:54:03+02:00

That was a really quick reply - thanks!

Problem is that Dixon's income from internet only sales is a tiny proportion of their 'bricks and mortar' sales. Sure, it's growing but the internet market is fragmented, competitive and highly price focused. On the internet an Ipod is an Ipod - as a seller you really can't differentiate - and so competition will pull prices down to a level where profit is almost zero.

And as for the new Currys/Dixons format, that's going to be neither fish nor fowl! It won't be able to carry a decent range of personal electronics or a decent range of white goods!

I think they'll quietly close their smaller stores and hope those left can compete ... which they won't!

Whatever happens it's going to be an interesting few months!

In response to:Dixons - leaving the High Street - What are they doing?

2006-04-06T11:45:26+02:00

I dont really see this as belwidereing for a few reasons,, ok here is my theory, I may be wrong of course.

Since the advent of the internet, and especially WEB2.0, it has become a huge potential market for any retailer, and they would be wise to base a long term business strategy on this model.

I disagree that it is almost impossible to differentiate, as I personally have saved hundreds on electronic goods buying online, sometimes from reputable eRetailers, sometimes not.

merging their name with Curry's is simply a marketing move is it not, that will possibly attract Curry's customers and also dixon's customers, therefore assuming this happens to wit they obviously do, instils a sense of value for money and quality in the consumer..perhaps?

To make an assumption that EBuyers only care about price is probably correct for 50% of eBuyers..however on a recent purchase I went for quality over price...the item was something that should last a good few years, rather than cheap Korean made goods at a fraction of the price.

I do believe that they will be profitable in the long run (perhaps they have some form of Communistic 5 year plan.. (sweet irony) ?), as if you have looked into the chain of eBuying it considerably cuts down on overheads by quite a substantial amount.

It may not be a sucess overnight, nor even within the next few years, but I do beleive this brand has enough fiscal security to survive such a move..

Like I say, I may be wrong of course..

G