Dixons tears up Metrologie deal

Ingram Micro and Gem oust French distributor as retail giant gains alternative Microsoft suppliers.

Metrologie's status as premier Microsoft distributor for Dixonsins alternative Microsoft suppliers. Stores Group has finally bitten the dust after it lost its coveted supply contract, worth over #20 million.

As revealed exclusively in PC Dealer (10 September), Metrologie's sole contract was under threat as the high street giant searched for an alternative source of Microsoft product. Sources had claimed that Microsoft was unhappy with Metrologie's service as a market creation distributor. Ingram Micro and Gem Distribution were attempting to muscle in on the deal.

It was understood last week that Dixons was putting the finishing touches to Ts&Cs with Ingram Micro and Gem for the supply of Microsoft software.

A source close to Ingram Micro said: 'Ingram has just completed Ts&Cs for the distribution of software products to Dixons. Ingram supplies approximately 60 per cent of the product and the remainder is handled by Gem.'

According to sources, Ingram Micro will handle small office product distribution, while Gem will carry around the remainder, around 60 per cent, for the retail market. Neither Ingram Micro nor Gem were available for comment.

Metrologie won the supply contract in March 1996, after the French distributor purchased Olivetti Software Distribution. At the time, the supply deal was estimated to be worth around #20 million. Sources close to Microsoft estimated that the Dixons deal accounted for about 80 per cent of Metrologie's Microsoft business.

Robert Mountain, Metrologie chairman, played down the loss of business.

'We still supply Dixons as and when it wants to buy from us. Our Microsoft sales are still high.'

A Dixons Stores Group representative said the retailer obtained product from several distributors and was not prepared to comment on the way software purchasing was split between distributors.