Can Dixons survive?

John Clare is striving to save Dixons, a High Street name for 70 years. But the ailing patient could be in for drastic treatment if it is to survive

Don't ask Dixons boss John Clare for help if you are having trouble setting up your new electrical gadget. Clare, a big man with a quirky sense of humour, is the first to admit that he is not the technological master of every product in his stores.

Nor are worries over wiring at the top of his agenda. He is more concerned about the future of the electricals retailer and the fear, unthinkable to many, that the Dixons name could disappear after nearly 70 years on the High Street.

A deadline has been set for Dixons either to make good or close after being squeezed by rising rents and cut-throat competition from rivals, particularly the powerful supermarkets.

'We are all working very hard to make sure that Dixons does not disappear,' says Clare, 54. 'A number of new store designs are on trial.' The key period will be next Christmas, he adds. 'It is when we are at our busiest and that is the time to really put new formats to the test.'

Clare, who earned £609,000 last year, was educated at Great Yarmouth Grammar School in Norfolk and Edinburgh University. Like so many high-flying businessmen, he began to climb the corporate ladder as a graduate trainee with Mars.

He insists that whatever the fate of Dixons stores, he is in no hurry to change the name of the group, which embraces Currys, The Link and PC World.

Clare, generally laid-back and even jovial when dealing with City commentators, shows signs of irritation when pressed about the future of the Dixons chain.

'Dixons Group is an international company,' he says. 'We have seen significant expansion abroad and have a really exciting story to tell. But all anyone wants to talk about is what is happening here in the UK.

'Yes, we have looked at the name issue, but it isn't on the agenda right now. It all depends on where we go with Dixons. But we are working hard to come up with the right answer.

'Six newly designed test stores have been opened and we are continuing to look at other options.'

The original store opened for business as Dixons Studios in Southend, Essex, in 1937 with an investment of £100. The chain now accounts for only 11% of the group's profits. So it is ironic that, after a warning last November that growth was slowing, the chain was the group's star performer at Christmas. Sales were up ten per cent on the same period the year before, with a surge in demand for plasma TVs, iPods and DVD players.

Back in cloudy territory, Clare bridles at the thorny issue of extended warranties, fiercely criticised this year after a lengthy Government inquiry.

The W-word clearly rankles as he spells out Dixons' response, a payasyou-go plan called Whateverhappens. 'They are not warranties, they are service contracts,' says Clare. 'It's a huge operation --something the superstores selling cut-price goods can't offer.'

One guarantee he is keen to voice is that success for the group lies abroad. A third of sales come from international stores and he expects that to increase to 50% within five years.

The group will move into Poland and Portugal this year and is expanding its PC City stores in France from seven to 100. Clare is eager to talk about this aggressive expansion.

'This is a truly international operation. We have a lot of plans for growth,' he says.

What remains to be seen is whether Dixons can establish itself as an international brand while keeping its familiar place on the UK High Street.

Closer to home, Clare takes time out from the stresses of business watching his favourite football team, Spurs, and messing about in a boat on the Thames near his house in Maidenhead, Berkshire.

And as for messing about with electrical gizmos . . . well, that is sometimes a testing task for rising stars in the Dixons empire.

Clare is not averse to shutting executives in a room and insisting that they set up the latest bit of kit - an ordeal, he admits, that many have failed.

'It's a great exercise and a great leveller,' he laughs. 'I've even tried it with suppliers. It's no use selling complicated equipment if it is virtually impossible for customers to install when they get it home.

'Some of these things turn up with manuals the size of phone directories. I want to know that the average householder could set them up without having to keep coming back to the shop for advice. Making the supplier set up equipment at the back of the store has helped address the issue.'