DSGi has revealed its store transformation programme is performing ahead of expectations and will roll out the new formats over the next 12 months.

To date 13 Currys Superstores, 4 CurrysDigital stores, 41 PC World Superstores, one Currys Megastore and one trial combined Currys and PC World store have been reformatted.

Chief executive John Browett said the retailer will reformat another 90 to 120 stores in the UK and Nordics over the next 12 months.

DSGi said the new stores provide improved layout to “ease navigation as well as offering a wider range of products and services”.

The electricals giant said the transformation is working across “all the new store formats”, with average gross profits increasing by 15 per cent to 50 per cent over the most recent six-week period.

The retailer is hosting an analyst visit to its Birmingham Megastore today to show the City that its business is on track to cope with the downturn, and the increased competition when US rival Best Buy makes its UK debut.

DSGi said that with capital expenditure in the larger superstores of between£20 and£40 per sq ft, and around£100 per sq ft in the smaller high street stores, the cash payback is expected to be three to four years.

Browett said: “The past 10 months have been a period of intense activity for the group, and the results of our new formats show that our plans are working. The store transformation programme in the UK is delivering both sales and margin uplift ahead of expectations.

“While the current economic climate is impacting us in the short term, the good progress we have made with our Renewal and Transformation plan is already making a difference for our customers. This gives us confidence we will come out of the recession stronger and better positioned to deliver a good return for our shareholders."

It also said its turnaround plan in Italy is starting to deliver, while in Spain it would restructure its PC City operation to deliver “optimal shareholder value”. As a result it expects losses in Spain to be limited to£5m to£8m per annum during the recession.

It added that in the current financial year cost savings of£95m have been achieved, enabling group cost growth to be limited to 1 per cent.

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