Sky News business editor Michael Wilson
There's plenty of blood on the high street and you'd be some sort of crazy optimist to think that there's much to be squeezed out of retail right now - but re-enter Carphone Warehouse and Charles Dunstone.
It's just sealed a deal with the US electronics supermarket group Best Buy to expand its business across the UK and Europe.
Best Buy will take a 50% stake in Carphone Warehouse's retail business - Dunstone will plough the £1.1bn back into his broadband and fixed-line business and probably buy broadband rival Tiscali.
The enduring problem for electrical retailers, like for example DSG, the former Dixons, which owns Currys and PC World, is ever-decreasing prices.
Never mind the attraction of excitingly new technologies, from flat-screen tvs to sat navs - shoppers always knew that if they waited long enough, prices would come down.
Or they'll go online, check the prices and then ask for the same deal in the stores.
It's been a nightmare for DSG, and last month they announced their second profits warning since Christmas. So, how will Charles Dunstone increase his share of the mean streets?
He is after all, the man who said 'I'm no entrepreneur - I haven't started a loads of great businesses.
I'm a one trick pony.' Well apart from the superstore scale of the new shops, the thing Mr Dunstone is very good at is customer service.
So he'll make sure that the store staff are extra savvy, and he'll develop his share of the door-to-door service of the 'Geek Squad' - a mobile hit team who help the technically challenged at home with their IT problems- at a juicy price, of course.
If scale and service can beat the sharp deflation which is surely still to come on the high street, then the one trick pony may well ride to another winner. But it's a risky business.
Sir
Horrifying as the thought may seem, if people arent going online to check the latest deals then they must have more money than [Dj Sammy]
Insofar as the many an act surrounding the sale of goods and price, then the stores have gotton themselves into murky waters surrounding unfair charges like those applied by many an electrical utility giant.
As the BoE has now shown that it cares more for consumers and future prosperity, I would leave consumers with one thought which I hope will bring a smile to many a hardened shopper and that is [California Dreamin]....happy shopping yo and what time is dinner being served at http://www.sky.com/broadband and afters at http://www.sky.com/sports ? lets rumble and dont forget your suntan lotion as my skin is burning!
Posted by: Khalid 8 May 2008 15:18:18
Sharp deflation is hitting the High Street. Everybody who comes into my shop wants to deal. These big retailers I would have thought would have money behind them, but maybe too big to be flexible, I do not know how they work.It is good to hear of someone expanding as the present climate will not last forever.With that sort of money it is the long haul,not the immediate.
Posted by: Michael Cornwall 8 May 2008 14:13:01