The Dixons Store Group has ousted another of its competitors from the market with its acquisition of Seeboard's retail chain for #19.5 million.
The latest purchase in the retail giant's blitzkrieg on the electrical market gave Dixons another 20 high street stores and 19 superstores. Dixons intends to close two-thirds of them, but maintained it will retain the 550 Seeboard staff.
A Dixons representative confirmed: 'About a third of the stores will remain open. They will be either Currys, Link or a few Dixons stores - there will be no PC Worlds. The superstores will be Currys. We have not decided on an exact breakdown as to which will stay open and which will close.'
Jeremy Davies, analyst at Context, said non-specialist electrical retailers had watched margins and business dwindle while the specialists prospered.
'Dixons is extremely strong and it is difficult to compete. Companies are focusing on what they are good at and expanding those areas - it's all about economies of scale,' Davies said.
He added: 'Acquisition is a cheap way of expanding and Dixons has done okay with this deal. Seeboard probably decided to get out and approached Dixons.'
THE EXPANSION OF RETAIL
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