DSG International, which owns Currys.digital, PC World and Dixons.co.uk, is to close 200 stores.

The company issued two profit warnings this year, has been hit by falling sales of computers and electrical goods. The new Chief Executive, John Browett, comes one week after Carphone Warehouse (CPW) announced a joint venture with Best Buy.  This means that DSG will face even more competition after Best Buy superstores roll across Europe.

Analysts say that DSG has to do something fast before Best Buy makes a significant impact on the European market.