DSG International will close stores and axe staff as it embarks on a massive transformation programme and improves its systems. The electronics retailer, which owns Dixons, Currys.digital and PC World stores, said it was targeting a £50 million cost saving this year, aided by more efficient business processes, less duplication of staff, and better IT.

Revealed at the same time as it admitted poor sales, Dixons said it would “establish a common operating model for the group and consequently reduce costs significantly. The programme will simplify business processes, improve systems and decision making.”

Dixons said having one set of business processes would help it quickly improve operations and customer service. Yet details of how it will achieve this remain have not been revealed. The group admitted it needed to quickly address "inefficient" ways of doing business, and a complexity that "has left management stretched".

It is also striving for better visibility of its supply chain, and reduced IT development costs.

The company is set to lay off 400 staff from its head office and supply chain, and close more than 75 stores.

But it did not provide immediate comment on whether IT staff would be affected.

Saying that Dixons had “not kept pace” with customer needs, new chief executive John Browett stated: “We have developed radical and detailed plans that will transform the very DNA of our business over the next three years.”

“There is much to do to improve and simplify the business,” he added.

The company is also working to improve individual countries of operation, and sell more goods on the internet.

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