John Browett must be wondering when his luck is going to change. In December, shortly after he joined DSG International, the electrical retailer issued a profit warning that sent its shares to a 12-year low.

Last week Best Buy, the world’s biggest electricals group, planted its flag in the UK through a £1.1 billion deal with Carphone Warehouse.

To cap it all, the former Tesco executive had to return early from a sailing regatta at the weekend. There wasn’t enough wind.

Mr Browett put on a brave face yesterday despite a lukewarm reception to a five-point turnaround plan that laid bare just how much DSG’s star has fallen in recent years.

It wasn’t too long ago that Dixons – as it was known – was being hailed as one of the most innovative retailers on the block. During the 1990s, it launched a string of new formats including PC World and the Link while continuing to ring the changes in its existing stores.

Ten years ago, the group launched Freeserve, the first nonsubscription internet provider in the UK. It became the largest ISP in little over a year, with nearly 1.3 million customers. The group also made some good acquisitions in Europe.

However, in recent years it has seemed to be standing still, while the world has been changing very rapidly around it. It now faces formidable challenges, not least in terms of the migration of customers to the internet.

Mr Browett suggested yesterday that the threat from Best Buy would have a galvanising effect. It could well do, if only to galvanise one of DSG’s rivals to buy the business before Best Buy builds up momentum on this side of the Atlantic.

david.wighton@thetimes.co.uk

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