Dixons’ Browett Plans Rollout of Pixmania Stores Across Europe
Stock Chart for Dixons Retail PLC (DXNS)
Dixons Retail Plc (DXNS), Europe’s second- largest electronics retailer, plans to open small stores in shopping malls across Europe under the name of its online brand Pixmania as consumers demand a more multi-channel approach.
“There’s potential for a very fast rollout” of the 900 square-feet (83.6 square-meter) stores, Chief Executive Officer John Browett said at a press conference in London today. A branch of the company’s Currys electronics chain in a U.K. shopping street is typically about 2,500 square feet.
Dixons, the owner of the PC World chain, has been trialling a smaller version of Pixmania and said sales-per-square-foot have been encouraging as internet pricing proves popular with customers. Pixmania already has 17 larger outlets in Europe, though its main revenue comes from its transactional website that delivers to 26 countries. Browett said he sees scope for the outlets in hundreds of malls where the brand exists in Europe, including the U.K., France, Italy, Spain and Belgium.
Pixmania’s new smaller stores, whose slogan is the “one- stop shop for great deals,” will have a limited range of items and will be serviced with daily deliveries from its Paris warehouse so customers can order online and collect the following day.
Multi-channel sales are growing faster than pure online sales for Dixons. Multi-channel revenue climbed 13 percent in the year ended April 30, while e-commerce sales declined 5 percent, the company said. Dixons today reported a full-year loss after one-time charges of 309.4 million pounds ($496 million), including a writedown of the Pixmania business.
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