DSGi is to close around 77 of its 177 Currys.digital high street stores as their leases run out, leaving "up to100 stores in attractive catchments that most likely will be the focus for future trading".

Chief executive John Browett's review of the troubled electricals giant, however, did not appease the City, sending shares tumbling nine per cent.

Adding to DSGi's woes, profits for the year had already been forecast in April to be between £200-£210 million – a considerable drop on the £295m achieved the previous year.

Exceptional costs of £395m expected for the year just finished have not helped either - £340m of them related to the group's struggling Italian operations.

However, during the coming financial year, Mr Browett plans to shave £50m off group costs.

He admitted DSGi had not kept pace with its core customer needs, particularly in the UK but he said radical plans had been developed "that will transform the very DNA of our business over the next three years".

Service – perhaps with an eye on the arrival of American mega retailer Best Buy into Europe - will be a key feature of the new DSGi.

"We will focus the business on delivering an unbeatable combination of value, choice and service for our customers," said Mr Browett.

"This includes helping our customers with complete solutions such as connectivity, delivery, installation, repair and converging technology."