Amstrad is to go back on its pledge not to sell products through
retailers and start selling its Dancall-branded telephone products
through Dixons stores.
The move marks a U-turn for the troubled technology firm, which withdrew
its computer and fax machines from the retail sector in November 1994.
At the time the Amstrad chairman, Alan Sugar, said margins were being
badly squeezed in high-street retailers, and he relaunched Amstrad as a
direct sales firm. No Amstrad products have been sold through the retail
An Amstrad spokesman confirmed Dancall mobile phone products would be
sold through Dixons, and suggested it could pave the way for further
products to be sold in the retail sector. However, he ruled out a return
to the high street for Amstrad’s Viglen PC business.
The reversal is intended to help turn around Amstrad’s pre-tax losses of
pounds 14.9m in the year to the end of June. The group had invested
pounds 10.7m in a restructuring of its Amstrad Consumer Electronics
business, but was hit by poor trading conditions in Europe. An abortive
takeover through Psion cost pounds 300,000.