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Dixons Carphone to close UK Carphone Warehouse stores

Dixons Carphone has said that it will be closing all 531 Carphone Warehouse stores in the UK as it looks to return its mobile business to… View Article

ELECTRICALS

Dixons Carphone to close UK Carphone Warehouse stores

Dixons Carphone has said that it will be closing all 531 Carphone Warehouse stores in the UK as it looks to return its mobile business to profitability.

The company expects the move to result in 2,900 redundancies, although almost 40% of the affected staff are expected to take new roles elsewhere within Dixons Carphone. Representing 8% of the company’s total UK selling space, the stores will close on 3 April.

Following the closures, mobile products will be sold online and through Carphone Warehouse shop-in-shops in 305 big Currys PC World stores.

Dixons Carphone said its mobile category will make a £90 million loss this year and is currently holding back the wider  business.

Alex Baldock, Dixons Carphone group chief executive, explained: “Customers are changing how they buy technology, and Dixons Carphone must change with them. We’re underway with a fundamental transformation to do so. Today’s tough decision is an essential part of that, the next step in making our UK mobile business a success for customers, colleagues and other shareholders.

“There’s never an easy time for an announcement like this, but the turbulent times ahead only underline the importance of acting now.”

The changes do not affect the 70 Carphone Warehouse stores in the Republic of Ireland.

Dixons Carphone said it is currently on track to meet its full year adjusted pre-tax profit guidance of £210 million, but warned that the situation may change over the final weeks of the financial year.

Giving an update on the impact of Covid-19, the company said its trading to date has not been materially impacted.

It added: “We are aware that our stores could experience a significant reduction in sales in the months ahead and we are modelling a range of downside scenarios and planning accordingly. We are ready to switch more fulfilment to our online and direct channels.”

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