Electrical retailer DSG international is set to open a large format store in the UK in the next few weeks as it attempts to turn the struggling business around.
In a interim management statement today it revealed like for like sales were down by 7% for the 16 weeks to 23 August.
John Browett, chief executive, said: 'We have had a challenging start to the year, although we are trading against tough comparables. The economic backdrop in which the group operates remains difficult across Europe, and we are managing costs and stock levels accordingly. We remain very cautious about the consumer outlook.’
Copying overseas format
DSGi said it is set to open a ‘large format store of 50,000 sq ft, based on the group's successful overseas format’ and it is also refurbishing and opening 10 new format Currys and Currys.digital stores by Christmas.
At its PC World stores it has opened five in the new format and it now plans to refit a further 25 stores to the format following the initial success.
£50m cost reduction
It had embarked on a £50m cost reduction programme which it said had been delivered and it has a target for a further £25m of cost savings by the end of the year.
It said total sales growth across the group was up 4% but gross margins were down 0.75% year on year.