DSGi dismisses threat of Best Buy's arrival in UK as sales of iPads and TVs soar

The chief executive of DSGi, owner of the Currys and PC World retail chains, has seen "no impact" from the launch of Best Buy in the UK.

John Browett made his comments as he unveiled a 6 per cent surge in first-quarter underlying sales in the UK and Ireland – its biggest uplift for four years. The "encouraging" performance was driven by soaring sales of Apple's iPads, and TVs before and during the football World Cup.

Best Buy, the world's largest electricals chain, opened its first three stores in the UK this year in Essex, Southampton and the West Midlands, but DSGi said it had actually seen a sales uplift in its adjacent stores since then.

Mr Browett said: "We are a bit surprised. The reality is that there is no impact in our business from anything they have done. When they [shoppers] came to our stores they always cross-shopped. They thought our service and range was better."

DSGi, which runs the Dixons website and has operations in countries from Italy to Spain, posted a 3 per cent rise in underlying sales for the 12 weeks to 24 July. However, it was dented by a weak performance in Greece, where the economy has been in dire straits.

During the World Cup, DSGi – which will soon be renamed Dixon Retail – grew TV sales by 40 per cent, compared to four years ago.

It was boosted by its "cash for goals" promotion: before the tournament started, Currys offered customers a £10 voucher for every goal England scored if they bought any TV for £599 or more. While the group paid out "millions" of pounds to customers, including for Frank Lampard's disallowed goal against Germany, DSGi had been fully hedged and benefited substantially from the uplift in TV sales.

Mr Browett said: "We had a very good World Cup," adding that it grabbed "significant [market] share during the tournament".

DSGi also benefited massively from its semi-exclusive deal with Apple to sell the iPad in June and July.

Mr Browett said it had been "bowled over by the interest" in the iPad. He added that the new iPad would be a "winning product at Christmas".

He was also bullish about its new 3D-TV products during the so-called golden quarter for the sector. "3D TV is really a breakthrough for us. It is something that customers really want," said Mr Browett.

Total sales at DSGi rose by 3 per cent, helped by its Nordic chain Elkjop continuing to perform strongly.

As part of its transformation programme, DSGi said it had been "incredibly active reformatting stores" with 43 completed during the first quarter.

It is on track to have stores representing 60 per cent of sales reformatted before the Christmas peak.

Mr Browett said he was not "expecting a dramatic" impact from the 2.5 per cent rise in VAT to 20 per cent on 4 January. "It is £25 on a £1,000 TV so if you are in the market to do it you will buy it," he said.

Life and Style
food + drink
Life and Style
Shoppers in Covent Garden, London, celebrate after they were the first to buy the iPhone 6, released yesterday
Liam Payne has attacked the media for reporting his tweet of support to Willie Robertson and the subsequent backlash from fans
peopleBut One Direction star insists he is not homophobic
Life and Style
healthFor Pure-O OCD sufferers this is a reality they live in
Arts and Entertainment
A bit rich: Maggie Smith in Downton Abbey
tvSeries 5 opening episode attracts lowest ratings since drama began
Arts and Entertainment
Ben Affleck stars as prime suspect Nick Dunne in the film adaptation of Gone Girl
filmBen Affleck and Rosamund Pike excel in David Fincher's film, says Geoffrey Macnab
Life and Style
ebooksAn unforgettable anthology of contemporary reportage
Warner Bros released a mock-up of what the new Central Perk will look like
Arts and Entertainment
Lena Dunham
booksLena Dunham's memoirs - written at the age of 28 - are honest to the point of making you squirm
Arts and Entertainment
Jake Quickenden sings his heart out in his second audition
tvX Factor: How did the Jakes - and Charlie Martinez - fare?
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Quantitative Risk Manager

Up to £80000: Saxton Leigh: My client, a large commodities broker, is looking ...

COO / Chief Operating Officer

£80 - 100k + Bonus: Guru Careers: A COO / Chief Operating Officer is needed to...

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

Day In a Page

A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments