No More Dixons. Website to Close Today

DervProf

CLAPTON wrote: »

seems strange

-dixon had rubbish service
and high prices

but still put local dealers out of business?

Seems strange, but isn't.

Dixons had a big high street/retail park presence. Yes, their service often left a lot to be desired, and their prices weren't exactly cheap. However, they had the marketing and brand awareness to still sell loads of TVs, Fridges, Cameras etc to enough customers who didn't "shop around". Local dealers probably couldn't always beat Dixon's prices, but could beat them on service, but they would still not be able to attract many of the customers that simply went to Dixons because they knew the brand name. Now Dixons have finally gone the same way as many of the local dealers, losing out to online retailers who pile 'em high and sell 'em cheap.

ruggedtoast

A._Badger wrote: »

They didn't. Toastie is displaying his habitual lack of understanding.

Dixons originally competed in the High St against traditional retailers and undercut them, thanks to the greater buying power of the Kalms empire.

Later, faced with uneconomical premises in those very High streets, the model struggled against out of town sheds with even lower overheads. Needless the say, the Kalms empire had those, too.

Which is how it ended-up with Dixons and Currys. In later years it tried to re-style the Dixons business model. As others have pointed out, it simply ended-up floundering. The High St it helped to kill died even faster, so its town centre stores were left stranded. When DSG moved it to the retail parks, it competed against its own siblings.

Now it's the turn of the retail sheds to die - cheerfully being slain by Amazon and other online retailers.

Comet, for example, is in such a mess it was sold for £2 (yes, £2 - all of it!) in 2011.

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8879736/Comet-sold-for-2-to-former-MFI-owner.html

No flowers please.

It's simply evolution at work.

Don't worry, I don't think anyone is likely to be giving you flowers any time soon. Unless it's to commemorate the last thing you had an opinion on that you actually knew something about.

http://www.oft.gov.uk/shared_oft/monopolies/domesticelectricalgoods2.pdf

3. It shall be unlawful for a supplier to make an agreement, or carry out
an agreement (whenever made), to the extent that it restricts, directly or
indirectly, a dealer's determination of the prices at which he advertises or
sells specified goods.

This order came into force in 1998 . Prior to that Dixons were able to use their (at the time) enormous influence to collude with manufacturers to ensure smaller stores had to stock goods at RRPs they were either unable to sell at, or were virtual loss leaders. They were also denied popular stock lines altogether.

Dixons had more stock, better locations, more frontage and better marketing than most mom and pops so took the majority of the sales.

Given a choice, with no difference in price, most consumers at the time preferred to shop from Dixons than a perceived less reputable independent with a smaller stock line.

The one thing you are completely wrong about is that they undercut anybody, they didn't and this was completely illegal at the time.

Dixons vigorously opposed the Domestic Electrical Goods order when it came into place in 1998 and cited concerns over independent retailers, despite proof that some electrical goods in the UK were up to 50% more expensive than in Europe, and the act for once, allowed independents to compete with Dixons on price.

The company and it's sales model went into decline from thereon in.

You are correct that online shopping came along and wiped out a lot of bricks and mortar shops, but thats about all you're right on.

Daedalus

YoungBusinessman wrote: »

Dixons put a fair few independants in Scotland out of business. There customer service is the same as santanders- no one has a good word to say about it. Don't think they have made any money in a good few years. JJB Dixons and Woolies.... Who next? I say home base won't be far off trouble...

Not Homebase, but Argos certainly, it is basically an instore website, it can't compete with online.

A._Badger

ruggedtoast wrote: »

Don't worry, I don't think anyone is likely to be giving you flowers any time soon. Unless it's to commemorate the last thing you had an opinion on that you actually knew something about.

As clueless as ever, Toastie. 'No flowers'; is a reference to funerals. Straight over your head, as usual.

Now go back and read-up on Dixon's own brand activities and then have a good long think how that might relate to undercutting traditional retailers.

vivatifosi

A._Badger wrote: »

Now it's the turn of the retail sheds to die - cheerfully being slain by Amazon and other online retailers...

...It's simply evolution at work.

There's a certain irony here. DSG job losses, if any, will probably be focused at their head office in Hemel Hempstead. The same town in which Amazon has recently opened a new distribution centre and in which it is recruiting.

skivenov

Have the duty free stores in the airports rebranded then? Ages since I've flown anywhere.

quantic

Currys, PC World and Dixons are all dire in my opinion, ebuyer and amazon are both light years ahead.

SingleSue

Pennywise wrote: »

The amount of retail parks where PC World sits at the opposite end of the car park to a Currys is ridiculous.

In a retail park near me, they are right next door to each other!

somethingcorporate

I don't actually think it's actually that illogical that they own lots of stores under different names that compete with each other - it gives the illusion of choice to the customer where in reality you are buying from the same outfit.

If you don't buy it from Currys but then go and buy it at PC World it is still money in the coffers for the group, from their perspective it is better than you not buying it at Currys and going to the local independent to buy it.

P&G do something similar by owning loads and loads of substitute products, they don't care if you buy Daz as long as you then buy Gaz.

CLAPTON

quantic wrote: »

Currys, PC World and Dixons are all dire in my opinion, ebuyer and amazon are both light years ahead.

Of course, it helps that apparently Amazon make no profits in the UK so pay no (very little) UK corporation tax; it's amazing how much business is done in Luxembourg.