Dixons to axe distribution centres

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The Independent Online

The retailer Dixons said today it was axing a series of distribution centres as part of a major cost reduction exercise at its UK business.

The retailer Dixons said today it was axing a series of distribution centres as part of a major cost reduction exercise at its UK business.

The group did not disclose how many jobs were likely to be affected by the change, but added that it would result in its distribution network being rationalised from 17 to just two over the next two years.

The overhaul, which is among savings of £30 million planned for this year, emerged as Dixons braced itself for an uncertain year ahead, particularly in the UK, where it said trading was likely to be "challenging".

Dixons also announced annual pre-tax profits of £336.8 million, down 8 per cent on a year earlier, when figures were inflated by one-off items. The underlying figure was 4 per cent higher at £343.1 million, following a 2 per cent rise in like-for-like sales.

As well as Dixons, the group has the Currys, Link and PC World chains in the UK, plus PC City and a clutch of other businesses in Europe.

It said today it planned to reflect its international presence by changing its corporate name to DSG International, which it said also reflected the fact that the Dixons chain now accounted for 10 per cent of sales and 5 per cent of trading space.

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