Nov. 4 (Bloomberg) -- DSG International Plc, Europe’s second-largest electronics retailer, will start free delivery of televisions and washing machines as part of a service-led counterattack against supermarkets and online retailers.

Goods will be delivered for no charge “if you can wait for a time that suits us,” Services Director Sebastian James said in an interview at DSG’s Newark warehouse in Nottinghamshire, central England. He declined to give a timeframe. The retailer currently charges a minimum 9.95 pounds ($16.21) for delivery.

DSG has lost money for two consecutive years as customers have turned to supermarkets such as Tesco Plc, which this month reported “double-digit” growth in sales of electrical products. Competition is set to increase, with U.S. giant Best Buy Co. planning five “big box” stores by spring next year, and John Lewis Partnership Plc opening smaller “home” stores.

“At the margin, all these paid-for services are good, but it’s going to take a long time for the customer to notice them,” said Simon Irwin, an analyst at Liberum Capital with a “sell” recommendation on DSG. “It probably doesn’t cost them much to offer, but there’s no way their competitors will let them take market share with these for long.”

James, who began his role in January, said offering free delivery is an “ambition” which is “very nearly there.”

With delivery trucks leaving from 14 hubs across the U.K., DSG customers could receive larger purchases like fridges for free after about 10 days, or pay 24.95 pounds for a next-day slot, James said. Competitor Comet, owned by Kesa Electricals Plc, also offers a next-day service for 24.95 pounds.

Among other services introduced by DSG are Tech Guys, which installs wireless networks, and the Cooker Valet, a 59.99-pound oven clean. The retailer also repairs 10,000 laptops a week.

“Changing into a service culture will take several years, but it’s a very sensible move and will help them drive extra revenues,” said David Jeary, an analyst at Investec Securities with a ‘buy” recommendation on DSG.

DSG is scheduled to report first-half results on Nov. 26.

To contact the reporter on this story: Sarah Shannon in London at sshannon4@bloomberg.net.

Last Updated: November 3, 2009 19:00 EST