Leopards can never change their spots, but maybe something almost as remarkable has happened: not only did DSGi have a great Christmas, it looks as if chief executive John Browett is genuinely changing the business for the long-term good.
As Best Buy gears up for its UK debut this spring, DSGi is becoming an ever more powerful force - admittedly from a lower base than it was once accustomed to.
There’s plenty still to be done but, almost perversely, that is one of DSGi’s strengths; it is indicative that more momentum can be generated for the big showdown.
Browett can sometimes appear a cerebral and distant character but he has clearly engaged DSGi’s workforce and brought them on board for change. Increased emphasis on service - one of Best Buy’s strengths - has helped DSGi, as have remodelled and new-style stores. Best Buy will face a tougher and better motivated incumbent market leader than it might have expected when it decided to enter the UK.
The need to confront Best Buy aside, there are other reasons to be cheerful about DSGi. Browett doesn’t buy the double dip recession theory. Although he does expect tough times, he is convinced there is still much potential for self-help at DSGi, and so continued improvement.
This year also brings the World Cup, which kicks off in South Africa in June. Economic uncertainty or no, that may bring a fillip. Browett said there have been such advances in TV technology over the past few years the World Cup might be a catalyst for shoppers to upgrade.
Last week’s DSGi update was a catalyst to analysts’ forecast upgrades and tribute to the impact so far of Browett’s renewal and transformation programme.
Best Buy Europe - the joint venture between Carphone Warehouse and the US retailer that at present comprises Carphone’s retail operations - also had a good Christmas.
Not so long ago, DSGi staffers might have feared relegation from the retail premier league would be inevitable as competition intensified. Now they’re more likely to be thinking, bring it on.
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