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Tuesday 8 January 2008

Will DSG Spin or Nose Dive?

From Times Online January 4, 2008
Tempus: John Lewis has stolen DSG's thunder

John Lewis reveals record trading in Clearance Sale in further sign of pressure on the rest of the high-street
Steve Hawkes


The figures from John Lewis today show that its post-Christmas clearance sale is generating record volumes, with more than £20 million taken at the tills on December 27, up 8.7 per cent on a year ago.
Critically, electricals continues to be one of the major growth areas. The department store group sold one 50” Samsung plasma TV every six minutes on December 27. That is the equivalent of more than a mile of plasma TVs in a day.

This follows a blistering December, where again the most consistent sales growth came in areas such as MP3 players, cameras and digital-photo frames. With John Lewis aiming to double in size over the next decade, its effect on the rest of the high-street is only likely to grow.

What more can we say? Please see our previous post.

The relative Competitive Strength of these two is demonstrated yet again, within days!
If DSG cannot win the race in "The Sales" against a competitor that is rarely the lowest price seller, what is left for them?

At what point does a downward spiral become an uncontrollable spin or a terminal nose dive? A Competitive Strength analysis can foretell this - if it is not already too late.
Is it already too late for DSG?

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