Dixons dallies with wider distribution

Sources suggest high street giant is looking to broaden distribution remit beyond Metrologie to Ingram and Gem

Ingram Micro and Gem Distribution are looking to muscle in on Metrologie?s high-profile supply contract with high street giant Dixons Stores Group.

Several sources claimed that Dixons was examining the option of widening its supply of software products ? particularly Microsoft?s range ? beyond its premier supplier Metrologie.

One highly placed source claimed that Ingram was going to pick up the rights to supply Microsoft?s business software, while Gem would do the consumer range by the end of the month.

Metrologie achieved the status of Dixons? premier software supplier following the French distributor?s purchase of Olivetti Software Distribution (OSD) in March 1996. At the time, Dixons? business was estimated to be worth #20 million, with almost 60 per cent of OSD?s sales generated by Microsoft product.

Paul Cook, Frontline sales director, said: ?Microsoft must be looking seriously at Metrologie in light of the threat of the loss of the Dixons business.?

It is estimated that Dixons accounts for about 80 per cent of Metrologie?s Microsoft business.

One source claimed: ?I think a lot of it is going to Ingram because it has had a traditional relationship with Dixons. The rest will probably go to Gem.?

A source close to Metrologie said: ?Microsoft appointed Ingram and Gem at the beginning of its financial year as the two primary distributors, so its only natural that they should be supplying Dixons.?

In July, Microsoft handed retail Ts&Cs to both Ingram and Gem, giving them an advantage over its other distributors for dealing with retailers.

Robert Mountain, Metrologie chairman, disputed suggestions that the distributor was about to lose any Dixons business. ?We have an ongoing relationship with Dixons. We add products and reduce products, there is a constant review procedure,? he said.