DSGi hikes digital and direct spend to drive sales

by Gareth Jones, Marketing 28-May-08, 11:10

LONDON - DSG International (DSGi) is boosting its £2.5m digital and direct marketing spend in a bid to reinvigorate sales across its Currys, Currys.digital and PC World stores.

The beleaguered electronics retailer has appointed Publicis Dialog and Publicis Modem to its agency roster, bringing them alongside M&C Saatchi, Walker Media and Play London.

DSGi plans to bolster the below-the-line portion of its £80m annual spend in an effort to stave off competition from US rival Best Buy, which plans to enter Europe through a joint venture with Carphone Warehouse.

John Browett, who joined DSGi as chief executive last September from Tesco, where he was operations development director, recently embarked on a wide-ranging business review that will result in the closure of almost 80 Currys.digital stores. The company hopes the shake-up will contribute to a £50m cut in costs in 2008/09.

DSGi also plans to ditch white goods, small kitchen appliances and personal care products from Currys.digital stores. It will replace them with a more extensive range of laptops and TVs.

The retailer is yet to brief Publicis Dialog or Publicis Modem on specific projects, but it is understood that the agencies will work to help the company transform its business over the next three years.