Electricals group DSGi’s decision to assess 40 UniEuro stores for closure in Italy has prompted City speculation that it may eventually close its entire business in the country.

Charles Stanley analyst Sam Hart said: “I would have thought it is the first sign that they will look to withdraw from Italy completely. The performance of the Italian business in recent times has been extremely disappointing and it has been haemorrhaging money for the best part of two years.”

However, he warned that until DSGi chief executive John Browett unveils his eagerly anticipated strategic review on May 15, it is difficult to forecast the retailer’s long-term intentions in Italy.

A DSGi spokeswoman said the retailer was committed to Italy and would continue to open UniEuro stores, but in locations that better fit its strategy.

Investec analyst David Jeary said that DSGi has many problems, such as the performance of its larger UK business, and some are much more important than the future of its Italian arm.

DSGi has 136 UniEuro stores and 10 PC City stores in Italy.

Topics