The electrical retail giant which owns Currys and PC World is expected to announce a programme of store closures this week, putting hundreds of jobs at risk.

THE electrical retail giant which owns Currys and PC World is expected to announce a programme of store closures this week, putting hundreds of jobs at risk.

DSG International is believed to be preparing to axe up to 200 of its 700 stores and convert dozens of outlets to a new consumer electronics superstore format that will include both its flagship brands.

Scotland could be hit hard by the reorganisation, with 11 PC World stores and 26 branches of Currys in the country. The firm has a large presence across Europe, including Italy, Poland and Sweden, after it converted all of its Dixons stores into branches of Currys, reinventing Dixons as an internet-only brand with a stake in 26 countries.

The revival strategy, which DSG International is due to publish on Thursday, marks the first phase of recently hired chief executive John Browett''s plans to get the business back on track after two profit warnings so far this year.

He has been conducting a top to bottom review of the business since joining in December and has pledged to deliver the "value, choice and service that our customers demand".

Mr Browett has already announced that 40 of its 150 stores in Italy will be shut over the next two years, but the key focus will be on his strategy for the key UK market.

Analysts have said that Mr Browett, who joined the company from Tesco, faces an uphill struggle with consumer spending slowing, competition from the internet and new rivals entering the fray.

Last week, Carphone Warehouse announced a tie-up with US giant Best Buy to launch consumer electronics stores across the UK and Europe from next year in a move that will pit the firms in direct competition to the likes of DSG.

Already under pressure in a competitive market, DSG has been cutting prices to attract increasingly cash-strapped shoppers, but the heavy discounting has started to impact on the bottom line. It issued a profits warning last month, bracing investors for lower-than-expected profits of between £200m and £210m in the year to April 5.

DSG yesterday dismissed the reports of its store plans as speculative.