Electricals retailer Dixons is to further focus on its multichannel offering and slow investment in its Nordic operations, ending three years of increased capital expenditure in the area.
Ronny Blomseth, Managing Director of Dixons Nordic Region, told journalists at Stockholm El Giganten store that he expects the growing popularity of e-commerce in Scandinavian countries to boost sales in the struggling electricals sector.
Dixons Retail Group opened 16 stores in the region in 2010 and is to open only two this year, highlighting the considerable deceleration in the market.
The company currently runs electricals retailers Elkjøp, Lefdal and El Giganten in Sweden, Denmark and Norway and Gigantti stores in Finland.
This announcement follows disappointing quarterly results for the group , which last week revealed that UK & Ireland sales declined ten per cent on a like-for-like (LFL) basis in the 12 weeks to July 23rd 2011, while gross margins fell one per cent year-on-year.
Dixons, which owns Currys and PC World, pointed to the strong Nordic market as a reason to remain positive about its financial results, as the area saw total sales rise 15 per cent in sterling and four per cent LFL.
However this latest development, reported by Bloomberg earlier today, will raise questions on whether susutained growth in the region can be maintained.
Pointing to the growth popularity of online shopping, Blomseth remained positive about the upcoming changes.
“The market will grow in the future, but the growth will be online, which is a very big opportunity for us,” he told Bloomberg.
“It gives us an opportunity to work with the important things, like the people, like marketing the brand, not just opening stores because that takes a lot of time.”