DSG International, the high street electrical retailer formerly known as Dixons, is preparing to fast track its plans to expand into central Europe, with one new store to open in Poland and 20 more to follow across the region "as soon as possible".

The retailer, which also operates Currys, PC World and The Link mobile phone shops, will enter the Polish market through its Electro World electrical stores, already active in Hungary and Greece.

In the latest move by a British-based retailer to build up in the international market - against dire trading conditions on the British high street - DSG will open its first Electro World store in Warsaw tomorow, with a second to follow before Christmas.

DSG hopes to open six stores in Poland by the end of next year.

In both sites, Electro World will share space with Ikea, the Swedish low-cost furniture and household goods retailer, in a move that DSG said signalled further co-operation between the two groups in the future.

The joint-venture echoes a store swap arrangement struck earlier this year between supermarket giants Tesco and France's Carrefour.

As DSG disclosed the 20-store fast track programme by Electro World this morning, it said the next store would open at Tabor in the Czech Republic.

It said opening in Poland means it will be operating in 14 countries and that it's non-UK businesses account for more than a third of its group turnover.

John Clare, the chief executive, said: "Electro World now has a strengthening foothold in markets with a combined population of more than 65 million. This is an exciting phase in the development of the brand and we look forward to pursuing our growth ambitions by serving customers with our combination of value, range and service throughout these dynamic economies.

The expansion drive will create 350 new jobs at Electro World, which currently employs more than 700 people and had sales last year of £106 milliion.

DSG said the decision to expand Electro World followed an operational and financial review of its performance in the Czech Republic and Hungary, where it has eight and six stores respectively. It said its existing stores were either matching or beating management expectations in terms of trading performance.

Like many of its peers in the UK, Dixons has been hit by falling domestic sales amid weak consumer confidence and an economic slowdown.

In September, it revealed a 3 per cent slide in underlying UK retail sales for the four months to the end of August. Citing the "challenging consumer environnment" and a "weak" market for white goods, Dixons reported that like-for-like sales at Currys were down 4 per cent, and by 7 per cent at PC World.

But a strong performance by the international division, with growth in like-for-like sales of 13 per cent in Ireland and 8 per cent in Greece, helped balance the weak showing by the British businesses.

International electricals sales were up by 5 per cent on a like-for-like basis.

Shares in DSG International closed last night at 142.25p, valuing the retailer at more than £2.6 billion.

For more on DSG shares click here

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