Dixons sells French Pixmania and Turkish ElectroWorld
Dixons is to sell its French ecommerce business Pixmania, while also getting freed of its loss-making Turkish company ElectroWorld. Four months ago Dixons said it would like to sell Pixmana and if that proved impossible closure of the operation was an option. By selling Pixmania and Electroworld Dixons can now focus on markets where they have leading positions.
International Retail Index 2019
The definitive guide to international retail in 2019 and beyond. How do you rank? Find it out now.
ElectroWorld is going to being sold to Turkish electricals retailer Bimeks with the deal expected to be completed at the end of this year. Dixons seems to receive a cash consideration of approximately 2,5 million euros over two years. For Pixmania, Dixons received an irrevocable offer from Mutares, a German investment firm. The electricals retailer will provide 69 million euros to support its loss-making online store. Dixons chief executive Seb James is very pleased to secure the sales of these two businesses. Pixmania lost 36 million euros last year.
Europe’s second-biggest electrical goods retailer announced in a statement with the trading update that it had an encouraging start to the year, “despite a July that was sizzling in the north of Europe and chilly in the south – affecting electronics and air conditioning sales respectively for that month.”
“I am a passionate believer that Dixons succeeds where we offer our customers an integrated multichannel proposition, where we are the market leader and that we do best when we stick to our knitting”, Seb James said. “Despite some reports of improved economic conditions, we remain cautious on the state of the market for the year ahead. But with this good start, I am excited about the rest of the year and about the future for a successful and simplified group.”
Dixons Retail owns different brands in Europe, like Currys and PC World in the UK and Ireleand, and Elkjøp in the Nordic countries.