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Industry News

Published on May 29th, 2018 | by The GC Team

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92 Dixons Carphone stores to close

Electrical goods and mobile telephone retailer Dixons Carphone has announced that 92 of its current 700-plus Carphone Warehouse stores will close this year, following a warning that profits would fall sharply this year and a near-20% drop in Dixons Carphone shares.

Pre-tax profits for 2017-18 are forecast at around £382 million, but the company’s predictions for 2018-19 are that pre-tax profits will drop to around £300 million.

It’s clear that the changes in consumer buying habits have hit the mobile phones and services market in the UK, with long-term mobile contracts declining and handset upgrades being less frequently chosen. Chief executive Alex Baldock, who took on the role earlier this year, is quoted as saying “nobody is happy with our performance,” but that a focus on “early action in the UK” could fix the current problems. “We won’t tolerate our current performance in mobile, or as a group,” he said. “We know we can do a lot better. Eight weeks in the business have cemented my optimism about Dixons Carphone’s long-term prospects. I’ve found exceptional strengths, and though there’s plenty to fix, it’s all fixable.”

As well as the changing market in mobile phones and services, Dixons Carphone is also expecting – and budgeting for – a contraction in the UK electrical goods market.

The company has confirmed that no jobs will be lost relating to the store closures.

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