Tuesday, 22 April 2008

Another Profit Warning from Dixons

The company which owns Dixons, Currys and PC World is losing customers. Perhaps this is why...

Just after Easter - almost a month ago, I emailed the Chief Executive of DSG International electrical group to tell him why shopping with Dixons doesn't work. Dixons Tax Free prices aren't what they claim and Dixons website is unable to fulfill my order for some recordable DVD's.

After a couple of weeks I had to remind him about my email. Then last week Dixons parent company issued its second profit warning since Christmas. It seems that other shoppers share my unwillingness to spend any more of their hard pressed cash with the Dixons group (Dixons, Currys, PC World).

So Dixons response to my complaint is enlightening. Unlike Ben Verwaayen BT's Chief executive who personally replied to my email last week, Mr John Browett (formerly of Tesco, and DSGI's bright new signing) has someone from 'Executive Correspondence' deal with my complaint.

Their patronising attitude may explain why the groups' tills have stopped jangling. To paraphrase the letter - Currys can sell end of line products at whatever price they like (even if that means the 'High Street' price is cheaper than the 'Tax Free' price at the airport). "On all current lines we will offer the same price minus the equivalent of VAT".

Actually on this point The Executive Correspondence unit is wrong. The Tax Free price is actually the price before VAT is added (14.9% discount - not minus the 17.5% they would have you assume).

Oh and finally and if I want to talk about my order with Dixons Memory Direct I can phone them up.

Currys, Dixons, PC World's contempt for their customers can be found in abundance on web forums. The Inquirer.net for example has numerous PC World customers explain why the company, like the products it sells, is destined to become obsolete.

Tonight I emailed John Browett back with a copy of this post and an instruction to cancel my DVD order with Dixons Memory Direct - which 8 weeks after clicking 'confirm order' I'm still waiting for.

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