Buoyant Dixons defies 'closure' rumours
21 per cent increase in turnover for its 2003/2004 interim results
Dixons Group has poured scorn on industry rumours that it is suffering from a business downturn by posting a 21 per cent increase in turnover for its 2003/2004 interim results.
The retail giant, which also owns channel rival PC World Business Direct (PCWBD), posted turnover of £3.1bn and pre-tax profit of £105.7m for the 28 weeks ended 15 November 2003.
For the past week, Dixons Group has been dogged by rumours that it will close half of its high-street Dixons stores this year.
The firm has claimed these rumours are a misinterpretation of its recent move to create four 'XL' superstores around the UK, which resulted in the closure of several nearby Dixons stores.
"The rumours came out of speculation following the opening of our XL stores. These are prototypes and it is too early to say whether this will be the direction Dixons follows in future locations," said Kellie Evans, a representative of Dixons Group.
"Our first XL store opened in Cardiff. We closed a Dixons in the same street and one close by, but still had to take on new staff."
Dixons' results will cause sleepless nights for some channel players. Only last week a survey of 500 resellers across Europe by analyst Context found that 85 per cent of those questioned were fearful of losing out to large IT retail outlets.
Shaune Parsons, managing director of Cardiff-based VAR Computer World Wales, said that while Dixons was not a great threat to business, PCWBD was.
"Luckily we are not affected by the Dixons XL store, but some smaller VARs would be," he said.
"PCWBD is aimed at the same marketplace as us but, while it offers the same range of products, it doesn't offer the same levels of service and aftercare as a VAR."