Electricals giant DSGi is expected to cut its dividend and announce the closure of up to 200 of its 700 stores in the first stage of new chief executive John Browett’s strategic review this week.

DSGi, owner of Dixons, Currys and PC World, is expected to close stores in a piecemeal fashion, with analysts forecasting up to 2,000 jobs will be axed.

DSGi has issued two profit warnings since Christmas and analysts believe it will cut its dividend by up to 50 per cent, from 6.9p last year, and close stores to reduce its fixed-cost base.

Browett’s plans will come under further scrutiny after US electricals giant Best Buy last week announced it will enter the UK market by buying a 50 per cent stake in Carphone Warehouse for£1.1 billion.

Best Buy is understood to be planning to create as many as 30,000 jobs in the UK and opening up to 200 stores.

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