All change in electricals but Dixons is still on top

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In the space of a week, the electricals retail landscape has been transformed.

Hot on the heels of Best Buy’s decision to close its UK big boxes, Comet was sold for just £2 – both developments evidence of how tough the sector is.

The one thing that hasn’t changed is the dominance of Dixons, the only big player that’s profitable.

Dixons has had its own difficulties but the scale of improvements made over the last few years is testament to chief John Browett and his team’s prowess.

Carphone Warehouse boss Charles Dunstone acknowledged that with refreshing candour, even as he revealed he was shutting his big blue sheds, run in partnership with Best Buy.

But while Browett may have allowed himself a moment of satisfaction as Best Buy raised the white flag, there is no room for complacency at Dixons. Threats remain, such as the growth of online rivals.

The signs are that complacency is as out of character at Dixons now as it was when founder Lord Kalms was at his most red in tooth and claw – though there’s probably less shouting these days.

Best Buy’s retreat and Dixons’ strength raise questions about Comet’s future under private ownership. There’s a huge challenge ahead to re-engineer the business and put it on fighting footing once again – recent trading has been truly dire.

Comet’s new owners would do well to bear Best Buy’s errors in mind as they attempt to carve out a future.

Best Buy’s UK big boxes failed not just because of awful market conditions, but because the business did not achieve scale quickly enough, the name stood for little with shoppers and there was some arrogance about its potential to change the game.

However, Comet’s new stores may also take inspiration from Browett’s achievements and view Dixons’ improved fortunes as evidence that electricals retailers can be transformed.

Nobody will doubt the scale of the task ahead. Comet allowed the competition to overtake it on territory it once held, such as service, and failed to respond to the changes wrought at Dixons. But the new owners have had success in the past after taking control of another former Kesa business – continental chain BUT. The circumstances of this deal are very different and the market much harsher. But let’s hope they succeed – it would be better for everyone if there was effective competition in the field.