Bluetooth is a short range radio technology which electronic devices use to communicate without wires. It is aptly named after a Danish Viking King (Harald Blåtand) who managed to unite Denmark and part of Norway which he then ruled from 940-981. Blåtand translates to Blue Tooth and it is thought he got the name becuase his love of Blueberries stained his teeth blue.
The technology is cheap, effective, has low power consumption, and can replace short wires such as the wire from your MP3 player to your headphones, computer to printer, keyboard to computer etc. There are more and more imaginative devices appearing that use Bluetooth in some way or another. My Mobile Phone, Video Camera, Laptop, and Mouse all use Bluetooth.
So when the sales person in Dixons waxes lyrical about Bluetooth this and Bluetooth that, you know it's not rocket science, it's just a way for an electronic device to communicate with another without wires. Bluetooth is very handy to have, but be careful not to pay too much extra for the luxury.