Charles Kalms, a Jewish immigrant from Eastern Europe, founded a portrait photography studio in London in the 1930s, had been selling advertising space on the London Underground when he met Michael Mindel, who had a small photographic studio in Oxford Street but was keen to expand. Together, they opened the first Dixons photographic studio at 32 High Street, Southend. The business was incorporated as a private company called Dixon Studios Limited (the shop front could accommodate a name of no more than six letters, and the solution was found by choosing the name 'Dixon' from a telephone directory) and registered it on 27th October 1937, with a share capital of £100.
Michael Mindel gave up his share in the business within two years, and Charles took full control, while continuing to run another business at the same time.

Throughout the war years there was an unprecedented demand for portrait photography, particularly from service personnel and their families, and the business flourished. By the end of the war the company had expanded to a chain of seven studios in the London area. But after the war ended, the market contracted as dramatically as it had expanded and the company was reduced to a single studio in Edgware, north London.

In an effort to boost sales, Charles Kalms began to sell cameras and other photographic equipment, and the studio gradually turned into a shop.
Charles Kalm's son, Stanley, who joined the business in 1948 at the age of sixteen, capitalised on the interest in photography which had resulted from the war. He proved to be a natural salesman with remarkable ambitions - the company began advertising new and secondhand photographic products in the trade, local and national press.
This laid the foundations for a mail order division. In the early postwar years, few people in Britain could afford to spend much on their hobbies, but interest in photography grew fast. This, coupled with "make your own terms" credit agreements, ensured that Dixons would become the number one photographic dealer.

In the 1950s, the photographic market in the United Kingdom was dominated by British, U.S., and German manufacturers, and the law at that time allowed manufacturers to dictate the prices at which their products were retailed.

Dixons expanded so rapidly it was forced to find a new head office to accommodate the growing number of employees dealing with 60,000 mail order customers and provide administrative back-up for six stores. Soon the 20,000 sq ft premises in High Street, Edgware became a buying centre too when Stanley Kalms started regular trips to the Far East. He forged vital links with Japanese manufacturers who supplied Dixons directly with products often made to the company's own specification. At that time, Japanese goods were not highly regarded in Europe, so Dixon marketed the goods under the German-sounding name of 'Prinz'.

In 1967, Dixons diversified into developing and printing by taking control of an 85,000 sq ft colour processing laboratory in Stevenage, the most up-to-date in Europe at the time. Again mail order on a massive scale became key to the company's success. it actually operated at a loss for a while before making a profit. Dixons also began to manufacture photographic accessories and display material and made substantial losses on this business before abandoning it in 1970.
Japanese audio and hi-fi units were also introduced into the Dixons range.
Charles Kalms stood down as Chairman and was succeeded by his son Stanley. Charles became Life President of the Group.

By 1969, Dixons had more than 100 shops. The key to Dixons' next leap in profits, in the early 1970s, was its move into electronics retailing. This began very cautiously in 1967, when some audio and hi-fidelity units were put on sale in six branches as an experiment. They sold well and were soon introduced into all branches.

Dixons started to expand abroad in the early 1970s, at first with success. Through small marketing companies in Sweden and Switzerland, it found valuable new outlets for its own brand of products throughout Europe.

In 1974, the main Stevenage Distribution Centre opened on a seven acre site with 163,000 sq ft of floor space, computerised control and conveyor belt stock handling. At the time it was the largest computerised warehouse in Europe.

In 1976, Dixons embarked on a new form of expansion in the United Kingdom. With the hope of achieving a large increase in outlets for its goods at one stroke, it bought Weston Pharmaceuticals, a chain of 200 drugstores, for £11 million, together with a wholesale business supplying independent druggists. The idea was to widen Weston's range to include Dixons products, in the same way that Boots, originally a pharmaceutical company, had so successfully broadened its range to include other consumer goods. "Boots must be our model," said Peter Kalms in the Investors Chronicle of 30th January, soon after the takeover.

These hopes were never realised. It became apparent within a short time that Weston had serious problems within its existing business and that any major expansion was out of the question. Its profits declined, and then turned to losses.

In 1978, Charles Kalms died at the age of 80. That year, Dixons introduced Saisho own-brand products presenting an upmarket high technology image spanning audio, TV and video products. The company also sold G.H. Rinck in 1978 to help them through a shortage of working capital caused by Weston. They had wrestled with Weston's financial problems for four years since 1976 in an effort to turn it around, but in 1980 decided to recoup what it could of its investment by selling all the drugstores. The wholesale business was kept for some years longer, but seldom produced a substantial profit.

So by 1980, two major investments had come to nothing, and the company's reputation as a growth stock was tarnished. The recession of 1981-82 delayed Dixons' recovery, with the result that its profits, after discounting inflation, showed no real growth for six years.
Dixons' main electronics retailing business, however, continued to expand throughout this period. By 1982 the company had raised the number of its stores to 260 and increased their average size. New electronic products were introduced as they were manufactured, including home computers, video recorders, and digital watches. By competitive pricing policies, Dixons won a sizable share of all these new markets. It launched a new house brand, this time with a Japanese name, Saisho. The photographic side of the business also continued to grow; its processing capacity was increased, and a property development unit was established successfully.
All of these investments paid off handsomely once Weston's problems had been left behind and the recession ended.

In 1984, Dixons' profits jumped by 46 percent. On the strength of this fresh spurt of growth, the company made its biggest-ever takeover in December of that year. The Currys Group PLC (Currys) was acquired - a chain of 570 shops, selling refrigerators, freezers, washing machines, and electronics, including a television rental business. Although it owned twice as many shops as Dixons, Currys' turnover was no greater, and its recent performance had been less dynamic. Nevertheless, it was a sound business with a good name, and Dixons had to pay £248 million for it. Kalms would later reflect that it was "one of the deals of the century." Also part of the deal was Bridgers, a chain of white and brown goods discount stores which formed the basis of today's Currys Superstores.

The merger of Dixons and Currys, under the name of Dixons Group, put the company into the top echelon of British retailers. Even after selling the television rental shops, the new company had more than 800 stores in the United Kingdom and its staff had grown to 11,000. Currys retained its separate identity within the company, but its business methods were brought more into line with Dixons'. In the boom conditions of the mid-1980s, the combination brought further large increases in profits.

In 1986, the Group acquired the Supasnaps chain of 337 specialist photo shops. Stanley Kalms also launched a bid for Woolworth Holdings, the British branch of Woolworth, which was still struggling to raise its profits after a long period of stagnation, but the £1.8 billion bid was turned down by the institutional investors who controlled most of Woolworth Holdings' shares.

In 1987, its 50th Anniversary year, the Group acquired Silo, the US's third largest power retailer with 119 stores and 2,000 employees, was the third largest electrical retailer in the United States and was strong in the East and Midwest. Tipton Centers Inc. was based in St. Louis and had 24 other stores. With these acquisitions Dixons controlled more than 1,300 stores worldwide, with 3.5 million square feet of selling space.

The acquisition of Wigfalls in 1986 brought into the Group a further 106 shops, trading mainly in the Midlands and North of England. Dixons and Currys head office departments and support with John Clare appointed Managing Director, functions were integrated into a single entity, Dixons Stores Group. The two chains, however, retained separate brand identities.
But size did not necessarily equate with success. Dixons' pretax profits peaked at £103 million in 1988, and when recession softened the consumer electronics market, profits started to decline.
As a result, Dixons found itself at the receiving end of a takeover bid in 1989. The bidder was none other than Woolworth, by then renamed Kingfisher, a company that had made a strong recovery since its 1986 financial difficulties.
Dixons was saved from this threat by the Monopolies and Mergers Commission, which ruled that Dixons and Kingfisher as a unit would have an excessive share of the electrical goods market. Kalms later estimated that the two companies wasted £40 million in fees on the bid and counterbid.

In 1989, the film processing division was sold to its management. The Group also bought Vision Technology Group Limited ( VTG), which operated four PC World Superstores and a group of companies selling mail order PCs, peripherals, software and accessories to companies, educational institutions and private individuals. VTG 's PC World Superstores were based in Croydon, Lakeside Retail Park at West Thurrock, Brentford and Staples Corner, north London. The Group sold VTG's mail order division and focused on the retail side of the business. Supasnaps was sold to Sketchley PLC. in the same period.

By 1991, it had doubled the number of its U.S. outlets, gaining a presence on the West Coast as well, and the worldwide store total had risen to nearly 1,450.

In 1993, the Group also sold Dixons U.S. Holdings Inc, Silo's parent company, to America's Fretter Inc., having lost reputed millions under Dixon's management. It did, however, retain a 30% stake.
Dixons refocused on the domestic market, acquiring Vision Technology Group Limited. (VST). VST had been formed just two years prior via the amalgamation of several mail-order computer companies in 1991. The merged firms opened their first retail outlet, PC World Superstore, that same year, offering computers, peripherals, software, and accessories. Following the acquisition, Dixons divested VST's mail-order operation and concentrated on a dramatic expansion of the four-store chain.

In January 1994, John Clare was appointed Group Chief Executive, and the Group announced the pilot of a new shopping format called The Link, which would sell the latest generation of communication services and products. In July, the first Dixons tax-free store opened at Heathrow Terminal Three.
In December, the Group moved its head office from Ealing to new premises in Hemel Hempstead, Hertfordshire.

In 1995, the Group opened the largest electrical superstore in Europe - the 32,000 sq ft Currys Superstore at Junction 9 off the M6 in Birmingham.
It also opened the fourth Dixons tax-free shop at Terminal 4, Heathrow, following the success of its other tax-free shops at Heathrow Terminals 1 and 2 and Gatwick South.
PC World's portfolio expanded with further openings in a number of principal towns and cities in the UK.
By the end of 1995, the new Link chain boasted 48 outlets throughout the United Kingdom.

After four decades at the helm, sexagenarian Stanley Kalms, remaining as chairman, continued to oversee strategy. Although earnings remained fairly flat at £1.9 billion in the early 1990s, pretax profit rose from £76.7 million in fiscal 1992-93 to a record £135.2 million in fiscal 1994-95.

Group Chairman Stanley Kalms (later Lord Kalms of Edgware) was awarded a knighthood in the New Year's Honours List of 1996, in recognition of his services to electrical retailing, and in April, Dixons stores became the first to sell the new Advanced Photographic System cameras.
The Group acquired DN Computer Services plc ( DNCS), the computer reseller business, which became part of the PC World division. DNCS enabled PC World to establish an even stronger position in the £3 billion business-to-business market. A £20 million expansion plan for the Stevenage Distribution Centre was announced which, when completed in August 1997, doubled its capacity.
The Group opened the first out of town Dixons store at Fosse Park retail centre, Leicester and its first store in the Republic of Ireland.
By the end of 1996, there were 25 PC World outlets throughout the United Kingdom. In Southend, they had taken over the large Ravens department store building at 90-92 High Street.

The Group acquired the retail assets of Harry Moore Ltd, the Ireland-based electrical retailer. The Group strengthened its presence in Ireland, opening a third Dixons store in Dublin and the first PC World store (and the largest computer superstore) in the Republic.
Telecom Securicor Cellular Radio Limited (Cellnet) bought a 40% stake in The Link, Dixons’ specialist mobile phone and communications retailer.
The Group announced record profits of £190.2 million and launched PC World Business Direct, a new IT mail order service incorporating the brand strength of PC World and the sector expertise of DNCS.

The nation's £8 billion a year obsession with electronic gadgetry was marked in October by the launch of ‘Dixons Online’ - the first electrical goods internet home-shopping service. Customers were offered guaranteed next-day delivery on mainland UK of over 2,000 products.

During 1998, Dixons Online was given a facelift, taking web customers further into the future of customer technology. New e-commerce sites were launched including PC World Business Direct and PC World Software.
The Group acquired Byte Computer Superstores Limited with 16 retail outlets.
At the year end, the Group announced full year pre-tax profits of £217.6 million and plans to open more than 100 new stores in 1998/99 creating around 2,000 additional jobs.
Currys became the first electrical retailer to stock Plasma Flat TVs in widescreen format. Later in the year, Currys and Dixons were among the first retailers to sell Integrated Digital TVs.
In September, the Group launched Freeserve, the UK's first fully-featured internet service available free with no registration or subscription fees.

In January, 1999, Dixons Group Retail Properties Limited was established to manage and develop the Group's retail portfolio. The Link sold its millionth mobile phone after just four years of trading. Freeserve also announced a milestone - its millionth subscriber. The lowest-priced PC ever offered by a UK retailer - at just £399 - went on sale at PC World, Dixons and Currys.
Year end pre-tax profits of £237.1 million were announced alongside plans to create more jobs in the coming year. The Group also announced its intention to float 20% of Freeserve, and did so successfully two months later.
Dixons Select was lauched in October. This shopping channel was launched on Open, the first integrated digital television shopping service.
In December, the Group made an offer for leading Nordic electrical retailer, Elkjøp ASA. Within six weeks the deal was complete.

In January 2000, the Group announced the acquisition of Ei System, the leading specialist PC retailer in Spain and Portugal, to take advantage of the rapidly growing PC market in these countries. March saw the opening of a state of the art customer contact centre in Sheffield, creating 2,000 new jobs.

European activity continued in April when the Group acquired a 15 percent stake in leading Greek electrical retailer, P.Kotsovolos, with stores in Greece and the Czech Republic.
The Group was named as the Company of the Year in the Sunday Times/Natwest Business Enterprise awards in June. In July, the Group showed underlying profit before tax increasing by 11% to £263.7 million.

In April 2001, the Group announced its sponsorship of the UK's first chair in entrepreneurship and innovation at Edinburgh University. PC World launched the first ever 1 GHz laptop by own brand Advent as well as the UK's first PC with a recordable DVD. In the same month, Dixons reported that sales of digital cameras had outstripped traditional 35mm cameras for the first time.
Elkjøp acquired SuperRadio, creating Denmark's leading out of town electrical retailer.

The full year results in July showed underlying profit before tax increasing by 5% to £277.8 million. The Group announced its intention to create 1,300 new jobs over the 2001/02 financial year.
In July, Sir John Collins was appointed a deputy chairman of the Group. The Board announced its intention that Sir John would succeed Sir Stanley Kalms as Group Chairman when he became President in September 2002.
In August, Currys unveiled its new branding initiative, the "Currys - no worries" theme to coincide with a major TV advertising campaign focusing around "the Currys family".
In September, the Group launched a new charitable campaign - "Health Matters" - to support a consortium of four health charities: Breast Cancer Campaign, The Stroke Association, The Prostate Cancer Charity and the MS Society.
In November, PC City in France boosted its online presence with the opening of two new superstores in Villebon and Plaisir, close to Paris. During the same month, readers of the Sunday Telegraph judged Sir Stanley Kalms to be the Sunday Telegraph Chairman of the Year for his outstanding business career and his contribution to British retailing.
At the end of November, the Group acquired a 24% stake in UniEuro, a leading independent retailer of consumer electronics and domestic appliances in Italy.

Senior management changes at the beginning of the 2002 reflected the Group's focus on growth in Europe and the UK. The opening of the first Electro World store in Budapest, Hungary, in the Spring attracted huge crowds and made the headlines in the Hungarian press. In September, the Group opened its first PC City in Italy near Milan. A few weeks later, the Group purchased a further 72% stake in UniEuro, Italy's leading independent electrical retailer, taking its total holding to 96%.

Back in the UK, Dixons xL, the largest store in the chain, was opened in Cardiff City Centre. The 26,000 sq ft store, arranged over two floors, is ten times bigger than the average Dixons store. At The Link, Newry, Ashling Kearney celebrated winning the best small store manager of the year award in the 2002 Retail Week honours in March.

Community Fonebak was Britain's first nationwide mobile phone recycling scheme, helping to fund small charities and community shops. Currys launched the 'Fridgesavers' scheme in partnership with Powergen. Under this scheme householders claiming benefit were offered a brand new energy-efficient fridge or fridge-freezer at very low cost.
PC Servicecall, the Group's Nottingham-based call centre employed a group of Nordic nationals to provide dedicated technical support to home PC owners in Sweden, Norway and Denmark. The team includes native speakers from Finland, Sweden, Norway, Denmark and Iceland.

In June 2003, the Group announced full year results showing underlying profit before tax up 1% to £301.3 million. PC City opened its thirteenth Spanish store in Catalonia, north-west Spain. Sweden's first ever PC City store was opened in Sickla, Stockholm.

Back in the UK two Dixons 'xL' stores were opened in Swansea and Birmingham to queues of 4,000 people each.
Sir Stanley Kalms won the first ever lifetime achievement award at the 2003 Retail Week Awards. He was praised by judges for creating a culture of change, innovation and professionalism.