Home Technology Carphone Warehouse to close all standalone stores at cost of 2,900 jobs

Carphone Warehouse to close all standalone stores at cost of 2,900 jobs

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Carphone Warehouse to close all standalone stores at cost of 2,900 jobs

Woman walks past Carphone Warehouse storePicture copyright
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Carphone Warehouse is to close all its 531 standalone stores on three April, leading to 2,900 redundancies.

The agency says the transfer just isn’t associated to the coronavirus outbreak, however was as a result of of the altering cellular market.

The cell phone retailer has retailers inside 305 huge PC World and Curry’s stores, and these can be not affected by the adjustments.

Nearly 40% of employees (1,800) affected by the closures are anticipated to take new roles within the enterprise, the agency stated.

Group chief govt Alex Baldock stated prospects had been more and more shopping for on-line and from its huge stores – which promote computer systems and TVs in addition to mobiles – as an alternative of its smaller, standalone cellular retailers.

“They can not discover all this within the small mobile-only stores which might be one-twentieth of the dimensions; they’re visiting these much less and these stores are dropping more cash because of this,” he added.

‘Important subsequent step’

The corporate’s standalone stores characterize 8% of Dixons Carphone’s complete UK promoting area.

It says the transfer is “a necessary subsequent step” in turning round its cellular enterprise as half of a method outlined in December 2018.

The intention is to return this facet of the enterprise, which is able to lose £90m this yr, to profitability.

Speaking in regards to the job losses, Mr Baldock added: “I do not underestimate how upsetting this information can be for our colleagues, and we’ll deal with everybody with honesty, respect and care.

“However although that is by far the hardest choice we have had to make, it’s mandatory. We should comply with our prospects. They need assist with all know-how, all in a single place, and this pattern is barely going to speed up in a extra linked 5G world.”

Dixons Carphone added that it remained dedicated to cellular and stated prospects would obtain the identical skilled service in its huge stores as within the standalone retailers.

It added that it was launching a brand new cellular provide later within the yr and the whole lot would nonetheless be obtainable on-line.

Kester Mann, from market researchers CCS Perception. advised the BBC: “Carphone Warehouse has been caught within the unlucky crosshairs of lengthening cell phone alternative cycles and ongoing apathy on the UK Excessive Avenue.

“It has been clear for a while that one thing had to give in its enterprise. A better give attention to on-line gross sales is a logical transfer.

“With greater than twice as many individuals anticipated to hold their present cell phone for longer than their final one, footfall has declined and cell phone retailing is harder than ever. Carphone Warehouse had no possibility however to make some main adjustments.”

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