DSG International, the parent of Currys and PC World, could close up to 200 stores as part of a restructure.

That's the claim of Tony Shiret, a retail analyst at Credit Suisse.

Mr Shiret told ERT Weekly that 2008 is likely to show "a further weakening trading environment".

Mr Shiret's comments coincided with a profit warning from DSGi, following poor Christmas trading.
Shares in the company fell by 27 per cent after DSGi said full-year profits could be up to £50 million below expectations.

Within UK and Ireland electricals, like-for-like sales, for the 11 weeks to December 29, were flat, while in UK computing, PC World reported like-for-like sales in the period down 10 per cent.

Mr Shiret claimed that 11 per cent of UK electricals are bought online, while in the United States, some 25 per cent – a quarter of all sales – are bought on the Web.

Mr Shiret said that the UK would probably go the same way as the US and added: "It makes logical sense for DSGi to get rid of its fixed capacity and reduce its store numbers, otherwise it risks screwing in-store profits
"Closing 200 stores is a must do."

Meanwhile, DSGi has dismissed store closure plans as "pure speculation".

Kevin O'Byrne, DSGi's finance director, said: "The stores are core to our business. We think stores will be core to retail for some time to come and we have no plans to close stores at the moment."