New-look DSG stores given the thumbs up

DSG said its new format Currys Megastores and combined Currys and PC World 2-in-1 shops were proving to be particularly popular as they offered customers wider ranges and improved standards of service.

It plans to refurbish around 100 stores in UK and Ireland in the 2010/11 financial year, with the majority ready for Christmas. The programme includes the opening of 25 Megastores, taking the total in the UK to 33, as well as 60 combined stores and 12 Currys and PC World standalone superstores.

In an update to City investors, DSG said the new format stores saw an average uplift in gross profits of 20 per cent.

Chief executive John Browett added: "The renewal and transformation plan is making significant changes to the group and we have started to see the benefit of this work."

Other changes have included the training of 20,000 Currys and PC World staff to provide better in store advice, more flexible home delivery times and faster turnaround at its television repair service.

The restructuring comes as DSG faces up to increased competition following the arrival of US electronics firm Best Buy.

DSG said a review of its portfolio led to the disposal of operations in Hungary and Poland, as well as the closure of underperforming stores in Italy, Spain and the UK. It has exited 152 stores across Europe since May 2008.