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| 03 July 2008 Dixons has been having a rough time lately. First Malcolm Marshall forecast in ERT Weekly and on ERTV that Currys wouldn’t still be on the high street in five years’ time. That got taken up by a variety of magazines and sparked further negative comments on the Internet. The Daily Telegraph then revealed that Patrick Macdonald, the former head of John Menzies, who had previously been announced as the newly appointed chief operating officer, had had “a change of heart” and was now joining as a part-time consultant and that was only on a six-month contract. Then to cap it all Goldman Sachs, the financial gurus, recommended selling DSGi shares. I take the opposite view. Dixons has definitely been suffering of late, but haven’t we all? I think this is a good time to buy DSGi shares, as I am sure that the business will return to a higher level of profits. Over the past five weeks, I have visited many DSGi stores and I am pleased to report that the new management team is getting results. All the airport shops look particularly good and I have also noticed a huge improvement in many older Currys and PCWorld outlets. Everything seems much brighter and tidier. The staff also seem to be happier and more willing to smile at customers – always a good sign. Perhaps this is because of the new online training. In April, DSGi registered a website called productlearningcentre.co.uk and anyone who works for DSGi can access the site. It contains a wealth of information about everything from the different store layouts within the group to specialised advice on hundreds of topics. Of course, this site is password protected, but I haven’t been selling computers for 32 years without learning a few things. I hope the new chief executive, John Browett, will forgive me for taking a peek at the excellent on-line training DSGi now offers its staff. I took a few hours to check every bit of advice from A to Z – from active charcoal filter on a Miele cleaner to explaining the zoom feature on a camera. Selling DSGi’s WEH (Whatever Happens) product support should be easy if sales staff follow the online guidance. It says: “A smoking TV, a bra wire tangled in the washing machine, a chocolate biscuit in the DVD player –no problem with WEH support. Ask the customer: ‘Was the product you are replacing reliable?’ “Remember ‘1-2-2-1”’lies at the very heart of What Ever Happens. 1 stands for ‘just one telephone call’. 2 stands for ‘we’ll visit the customer’s home with two days’. And 21 stands for our guarantee to fix it within 21 days or we replace it.” The training even gives the shop staff the number of the escalation team if ever a customer visits the store with a problem. Considering that this site was only registered a couple of months ago, it offers absolutely first-class training and already covers an amazing variety of topics. I promise not to tell anyone the password. Sometimes it is easy to forget that DSGi has 40,000 employees and shops across Europe from Iceland to Turkey. It does plan to close 77 high street stores, but I am pretty sure it will also soon be opening huge supermarket sized outlets in the style of Saturn and Media Mark in Germany. DSGi will soon be doing better again. And when DSGi prospers, so do we all.
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