PRELIMINARY FINANCIAL results for Dixons make for interesting reading. The group employs 36,000 people and operates 1,200 bricks-and-mortar stores in 26 countries across Europe and is one of the bell-wethers for our trade.

Despite its massive size and obvious buying power, Dixons still racked up multi-million-pound losses, albeit less than in the previous year. Like-for-like sales across the group were flat, but this is, in fact, a remarkable achievement, considering the huge drop in sales at competitors such as Comet and Argos.

The combined Currys and PC World format seems to be working well and the footfall in these shops has been assisted by demand for the latest Apple products. The margins on all Apple products are low, but the traffic generated gives the stores an opportunity to sell high-value accessories and other items.

I was in Nottingham a few days ago and noticed a salesman in Currys/PC World demonstrating how to stream video to a customer who was there to pick up an iPhone that he had ordered online.

Taking the customer’s picture on the new iPhone and instantly streaming it on to a big HDTV was a smart sales move and demonstrates how ‘Dixons’ stores have really improved their standard of service.

Last year, there was much talk of John Browett’s plan to transform Dixons and I have no doubt that the company has made vast improvements, but Dixons still has huge problems – the Pixmania online business and its 308 stores in Greece are a real cause for concern. I did notice that John Allan, chairman of Dixons, has just purchased 100,000 shares.

Presumably, he is confident that they will increase in value. However, over the past five years, Dixons shares have fallen in value by more than 90 per cent and now that John Browett has jumped ship to Apple, it is the transition to Sebastian James that is currently under test.
 

MICROSOFT HAS MADE quite a splash over the past couple of weeks with the announcement of its Surface portable computer and the pre-release of the Windows 8 operating system.

Microsoft has made hardware before and retailers worldwide have sold millions of Xbox games units and a variety of accessories such as PC mice. Usually, computers have been manufactured by a variety of Microsoft partners that have varied in size from huge companies like Sony, Acer, Dell, etc, down to small PC builders like my “wee shop”.  

This is the first time Microsoft has come to market with its own PC. For the past two years, the big laptop makers have been trying to come up with a competitor for Apple’s iPad. More than 100 models have been announced, but most have failed to make any impression at all. Although Samsung has had some success with its Galaxy line, Apple has continued to dominate this market.

Perhaps this is the reason Microsoft has decided to release its own product, as all its usual partners have failed to get a significant share of this important market.

It is hard to believe, but we have been selling Microsoft’s Windows operating systems for the past 27 years. It has come in many guises and the latest in the line can now be downloaded in preview mode.

We have been using it in the shop for some time and it is very good and has considerable advantages over the existing Windows 7. The new system will come into its own on portable PCs like the Surface, as it has a touch-screen graphical interface. The touch-screen interface will also be available when Windows 8 is loaded on to desktop units. The operating system will fit well with the current trend for all-in-one desktop PCs with relatively large touch-screens.

With all this touching of screens, I anticipate big sales of screen wipes and screen cleaning kits.
A number of dealers have been inspired by all the Microsoft publicity and have been in touch, asking me to write a piece offering advice on starting to sell computers. More in the next issue.