Electronics giant Dixons today denied rumours that it plans to close half of its high street stores because it is "making little or no money".
The report published in the Independent newspaper yesterday contains comment by Tony Shiret, an analyst at CSFB, who claims poor sales will force Dixons to close around half of its 329 high street stores this year.
But Dixons claims Shiret is simply speculating.
"There is no truth in the rumour. We plan to open larger Dixons XL stores, which will lead to some store closures," said a company spokesman. "We have four XL stores open at present but these are only in trial stages, the report is simply speculation."
Shiret cites the expected loss of profits created by the recent extended warranties decision and the general downturn across the PC sector as a whole, plus the growing competition created by supermarket chains moving into the electronics sector. This combination of factors, says Shiret, has put pressure on Dixon's earnings.
The group, which also owns the PC World chain and The Link stores, is expected to reveal the true state of play when it publishes its financial results on Wednesday.