Corporate cull at its best....
DSG International, owner of retail chains Dixons - sorry Currys.digital, PCWorld, and The Link, has today entered phase 2 of its corporate re-shuffle.The company, which had previously rebranded itself as Currys.digital and whose main sales come from High Street, must be hurting badly. It has now decided to employee another 1,000 people in order to improve customer services. These additional people will be located within stores and at DSG's offices. We reckon it's DSG efforts to put service before price, because it has now stated that it can't compete, in terms of price, against the raft of cut-throat e-tailers currently plying their online trade.
DSG has also decided to offload The Link chain to UK Teleco O2 for a tiny price of £30 Million. O2 has already owned 40% stake in the company for the last 4 years. The Link, which sells mobile phone contracts and operates in nearly every major town and city in the UK, has been losing money for several years.
DSG claims a "re-focus". We believe that it's down to the amount of people now buying online since price, and in a lot of cases service, is better. We also believe that we'll see a positive increase in DSG's share offerings today, with news of this dead leg being sold off.
Incidentally, O2 is in the buying mood. It's purchased 'Be Internet' for £50M. Be has 150 ADSL2-enabled BT exchanges, offering broadband connection speeds of up to 24MBit. O2 plans to increase the number of ADSL2-equipped exchanges to 400 by the end of the year, which will enable access to half of all UK homes.
Let us know your thoughts, and why you do/don't purchase from Currys.digital in the HEXUS.community
