Dixons Retail Group to focus on online retail

After reporting declines in sales for the U.K. and Ireland, Dixons Retail Group recently announced it will end three years of increased capital spending in the Scandinavian market to focus on lower-cost online sales. The stagnant electronic market in Norway and Sweden has forced many competitors to close stores, according to Ronny Blomseth, managing director of the company's Nordic unit.

Bloomberg reported that behind the U.K. and Ireland, 27 percent of Dixons' sales come from the Nordic region. After witnessing a 52 percent slump in shares due to the economy and poor consumer spending, Blomseth told the news source the company plans to spend more on online efforts in anticipation of a revival of the electronics market in 2012. He said the company will be able to focus on marketing the brand and not waste time opening new stores.

Dixons is looking to profit from Scandinavian online sales, which have doubled every year since 2007. The company recently reported a 10 percent decline in year-to-year U.K and Ireland sales for the first quarter of 2011, with online sales accounting for 14 percent of group sales.

"While we remain cautious about the economic outlook we will continue to deliver on our renewal and transformation plan and make the business better, easier and cheaper to run and deliver and unbeatable combination of value, choice and service for customers," John Browett, CEO of Dixons Retail Group, told Retail Gazette.