Dixons pulls out of Spain as losses continue
By Ben Sillitoe - 09:43AM - Thu 14th April 2011
Electricals specialist Dixons Retail is to close its 34 PC City stores in Spain due to the business’s continuing losses and a weak consumer environment, it was announced today.
Hundreds of staff are set to lose their jobs when the group’s stores, head office and online operations in the Mediterranean country are closed down.
A statement from the retail group, which also owns UK stores PC World and Currys, said: “The management committee of PC City has informed the employee representatives about the decision in order to start appropriate actions for the compulsory redundancy scheme which will be submitted to the relevant Spanish Labour Authority.
“Management will also look for solutions that secure employment for as many employees as possible.”
For the last two years Dixons has been undergoing a structural change, resulting in the opening of a number of stores that combine electricals and computer products.
Although the so-called Renewal & Transformation Plan is said to be progressing well, the company announced last month that it had decreased its profit targets for the financial year amid falling like-for-like sales and a tough trading environment.
The March trading update hinted at store closures in Spain, as part of a four-part plan to counter its decline.
Its other targets are to decrease capital expenditure to £160 million this year and £150 million each year thereafter, focus on cash generation and reduce property loss.