DSG International - Dixons/Currys/Comet/PC World.....
Discussion
Yes.
Was just discussing this yesterday. A decade ago as a student I was working for PC World. I still remember the entry level 'average sale' PC was £1349 plus VAT for the base unit and £349 plus VAT for the monitor.
At a 15% - 20% margin, this was £350 profit, plus the add-ons and high margin stuff sold with it.
You can buy a whole PC for that now. My local PC World is dead. I am betting on a good weekend I personally sold more turnover then than my local store on a weekend now.
They don't even bother with selling games any more, and are even having to branch into TVs and digital cameras to fill the floor space with something or anything that sells.
The notable absence is now Apple has a bigger market share than ever and is the quickest growing manufacturer, they have now stopped stocking them!
Dixons is gone. Used to be profitable in the high street, then couldn't compete with the net. Now their net only Dixons can't compete with the rest of the net.
Curry's? The big value stuff is coming down in price. Less turnover, less profit. Again they only just match the online retaillers. The retail store die hards can't get credit for the big purchases, and the ever present 'Interest Free Credit' for everyone who wants it is a thing of the past.
I give their chances of all three still being there in 18 months very slim. That said, they are all as weak as eachother.
Was just discussing this yesterday. A decade ago as a student I was working for PC World. I still remember the entry level 'average sale' PC was £1349 plus VAT for the base unit and £349 plus VAT for the monitor.
At a 15% - 20% margin, this was £350 profit, plus the add-ons and high margin stuff sold with it.
You can buy a whole PC for that now. My local PC World is dead. I am betting on a good weekend I personally sold more turnover then than my local store on a weekend now.
They don't even bother with selling games any more, and are even having to branch into TVs and digital cameras to fill the floor space with something or anything that sells.
The notable absence is now Apple has a bigger market share than ever and is the quickest growing manufacturer, they have now stopped stocking them!
Dixons is gone. Used to be profitable in the high street, then couldn't compete with the net. Now their net only Dixons can't compete with the rest of the net.
Curry's? The big value stuff is coming down in price. Less turnover, less profit. Again they only just match the online retaillers. The retail store die hards can't get credit for the big purchases, and the ever present 'Interest Free Credit' for everyone who wants it is a thing of the past.
I give their chances of all three still being there in 18 months very slim. That said, they are all as weak as eachother.
I do fear for this group. As you say, Dixon's is gone in all but name, PC world is full of large stores with small margin items now (I mean total Margin, not %) and Curry's are struggling with the web and prices coming down.
My bet is that we see a sell off of some of the outlets and PC world and Curry's merging so there is 1 store with more offering.
T-J-K
My bet is that we see a sell off of some of the outlets and PC world and Curry's merging so there is 1 store with more offering.
T-J-K
Gassing Station | Business | Top of Page | What's New | My Stuff