Retailer Spotlight: Currys Megastore from DSGi
Published: 02 October, 2009
Customers have been queuing overnight for bargain electrical goods, and police being called to control crowds at store openings. The brand causing all the fuss is the new Currys Megastore format from electrical giant DSGi.
The format, creating some of the UK’s biggest electrical stores at 50,000 sq ft, was launched last year specifically to counter the threat from US category killer Best Buy, which formed a joint venture with Carphone Warehouse to enter the UK market. The aim is to achieve dominance by increasing the depth and breadth of all ranges – the Megastores carry up to 10,000 lines.
The first Currys Megastore was created last year by refurbishing and extending an existing store at Junction 9 of the M6 at Wednesbury in the West Midlands, and it made an immediate impact. Opening day attracted over 15,000 shoppers and the store has seen a 54 per cent uplift in sales.
The second opened in New Malden, Surrey and this was recently joined by a 55,000-sq ft store – the biggest so far – on the Purley Way in Croydon. The Croydon store was created by installing a full-cover mezzanine in an existing store, and is the first to trade on two levels.
The first new-build store is likely to be on the Lakeside retail park in West Thurrock where DSGi has taken one of the most notorious retail warehouses in the UK. Originally designed as a Lifestore for Marks & Spencer, it most recently was occupied by the Danish furniture brand ILVA.
DSGi has identified 30-40 sites within its existing portfolio that could be suitable for conversion. One opened in the last financial year; five are expected to open this year and the programme will then accelerate with as many as 20 expected to open in 2010/11. With conversion costs estimated at £25 per sq ft, the conversion process is expected to pay for itself in less than three years.
The new Megastore format not only updates the look and feel of Currys, but also offers customers a ‘hands-on’ product experience. Interactive ‘play tables’, allow shoppers to pick up, turn on and test out a wide range of products before they purchase, including premium brands such as Apple, Microsoft and Bose. To maximize sales opportunities all stock is on the shop floor, and the Megastores have very limited warehouse space.
In the past Currys has scored poorly for customer service, with a widespread perception that staff lacked product knowledge and were more interested in selling warranties than electrical goods. As part of the conversion process all staff are retrained, and DSGi’s stated aim is to “out-specialise the specialists” by employing experts in each category and by going back to departmentalisation, so staff in white goods are not expected to sell computers.
This reflects The DSGi renewal and transformation plan announced by CEO, John Browett, in May 2008, which aims to totally transform customer service across all of the group’s brands.
In addition each Megastore will have a dedicated TechGuys desk in-store, enabling shoppers to benefit from expert technical support. Other services on offer include Currys’ next day delivery service, which gives customers the option to choose when they have their product delivered within a three hour time slot. Shoppers can also take advantage of Currys’ award-winning WEEE recycling scheme which offers free in-store recycling on old electrical products.
