The absurdities of short term corporate makeovers are hilariously exposed by Andrew Hill, in today’s Lombard column in the Financial Times.
In his piece Andrew decries the absurdity of the multiple name changes at the UK electronics retailer once known simply as Dixons.
Andrew talks us through the switchback ride of confusing name changes effecting the electronics retailer over the past half decade. While these have clearly enriched “branding consultancies,” they have only served to confuse or deter consumers (I, for one, haven’t set foot in a Dixons since I was overcharged for a digital camera there in 2006).
The switchback series of name changes has certainly been disastrous for shareholders. They have seen the value of their Dixons shares crash from a a high of 220p in October 2006 to a meagre 27p today. Perhaps the company should have had more faith in its original brand name?
Here are excerpts from Hill’s excellent Financial Times article, which can be read in full here:-
Dixons changed its corporate name to DSG International in 2005. John Clare, chief executive at the time, insisted he was Doing Something Good by putting “International” on the letterhead. “Dixons” just Didn’t Sound Great abroad. Business there was booming – unlike in the UK, which was enduring a Dreadful Summer for Gadgets.
In 2006, Mr Clare decided Britain was ready for more change. As part of “an enhanced multichannel strategy”, the group launched a Doubtful Signage Gambit, switching off Dixons’ familiar red fascia on the high street and replacing it with Currys.digital. Dixons.co.uk became one of the group’s online brands. Confusing. This was a Digital Switchover Gone wrong.
In 2007, shoppers’ Debts Started Growing and Dark Stormclouds Gathered over the UK economy. The new boss, John Browett, realised international operations were putting a Dent in Sales Growth. Some thought his company was just a Dull Stores Group. Mr Browett saw potential to do better at Distributing Satnavs to Guys and doing Deals on Software and Games. It seems to be paying off. Having long since Ditched the Strategic Goals of his predecessor, Mr Browett can finally Dump the Silly Group-name and revert to “Dixons Retail”. It’s a pity that, outside airport departure lounges, Dixons’ Stores have Gone. But the name reversal will cost next to nothing – and just talk to staff who’ve spent the past five years saying apologetically, “I work for DSG – yes, yes: the old Dixons”. They Definitely Sound Grateful.
Other disastrous corporate name changes in the UK market include Consignia, the new name given to the Post Office and Royal Mail group 2001. The company changed its name back to Royal Mail Group in 2002 after a public backlash..
This blog post was published on 5 Jun 2010