DSG in search of Turkish delight

DSG International, the owner of Currys and PC World, has expressed an ambition to become a leading international retail player after launching its Electro World brand into the Turkish market.

DSG has formed a joint-venture company in Turkey with the Sabanci family and expects to open its first store in 2008. John Clare, DSG's chief executive, said the company had a potential opportunity in Russia and was also focused on expansion outside Europe.

Mr Clare highlighted the company's desire to grow substantially outside the UK over the next few years. DSG plans to derive more than half its sales from outside the UK in the future. The UK accounts for about 65 per cent of DSG sales despite the fact that the company has 1,450 stores in 14 European countries.

Mr Clare said he expected continued strong sales of flat-screen televisions in the UK after reporting surging demand in the run-up to the World Cup. He said the company had experienced strong demand for such televisions since the end of the World Cup, although at a slower rate, and expected growth to continue. Only about 10 per cent of UK homes own a flat-screen television, he added.

The 5 per cent rise in same-store sales over the 16 weeks to mid-August failed to support DSG's recent share price gains. The shares closed 3.3 per cent lower at 202.75p yesterday as analysts fretted over the potential impact of rate rises on consumer spending.