Managing expectations
The last part of the Plan Webb wanted to bring attention to is the refitting of stores. "Refitted stores open for more than a month are generally trading 25 percent up on the others," he revealed.
Another presumed indicator of DSGi's difficulties is the reduction in its levels of credit insurance from companies like Euler Hermes. Webb insisted this is just part of a broader trend. "Credit insurance is an industry-wide issue; more a reflection of the state of the insurance industry than anything else."
To conclude, we brought up a common complaint within the channel that DSGi has used its dominant position to impose punitive terms and conditions on anyone wanting to put its stock on the shelves of its stores. While not conceding the point, Webb was keen to stress that Browett is "an extremely hands-on CEO and has developed close relationships with suppliers."
So the picture Webb paints is of a company that knows it's got to change, and fast, in order to survive. Add to its internal challenges the global recession, the trend away from the High Street and onto the Internet, and the imminent arrival of Best Buy in force and you have a Herculean task.
Quite how far it's got to go will be apparent on Thursday, when its latest trading figures are announced of which expectations are low.
