DSGi shares rise over 2% on FTSE 250 as group prepares to roll out Megastores

The electrical retailer said that it had exited 152 stores following a portfolio review. The group said that gross profit uplifts of new format stores were 20 per cent higher than average.

DSGi said that the early indications were that trading in reformatted stores in the second half of the year would remain strong. As a result of the success of the new stores DSGi said it would be accelerating the roll out of its Megastore and 2-in-1 stores.

The firm said that it had identified 70 locations in Britain for Megastores, with 33 stores set to be open before Christmas this year. A further 60 2-in-1 stores are also set to be opened this year.

DSGI said that it had rolled out E-merchant technology to its internet sites in Britain and added that its £200 million cost savings programme is on track.

John Browett, Chief Executive of DSGi, said, "The Renewal & Transformation plan is making significant changes to the Group and we have started to see the benefits of this work. The new store formats are popular with customers, particularly the Megastores and the combined 2-in-1 stores. The next twelve months will be another busy period as we roll out the improved proposition and introduce more services to more of our customers with an unbeatable combination of value, choice and service."

By 10:45 shares in DSGi were up 2.28 per cent to 35.50 pence per share.