Partly Cloudy

Partly Cloudy

max temp: 20°C

min temp: 13°C

Search

Dixons Carphone to close 130 stores in roll-out of ‘three-in-one’ format

PUBLISHED: 09:33 26 January 2016 | UPDATED: 09:34 26 January 2016

Dixons Carphone is planning to focus on superstores bringing together its Currys PC World and Carphone Warehouse  brands.

Dixons Carphone is planning to focus on superstores bringing together its Currys PC World and Carphone Warehouse brands.

Archant

Retail giant Dixons Carphone is to shut more than 130 stores under plans to roll out electrical superstores merging its three main brands across the UK and Ireland.

The group said it will overhaul all its PC World and Currys stores to relaunch as so-called three-in-one stores, combining PC World, Currys and Carphone Warehouse over the next year and a half.

It will close 134 stores as part of the revamp, but Dixons Carphone said it will relocate all staff impacted to nearby superstores.

Details of the changes came as the group hailed a “strong” performance over Christmas and edged its annual profit outlook higher.

It said UK and Ireland like-for-like sales lifted by 5% in the 10 weeks to January 9, with the strongest trading day in its history on Black Friday in November and a good start to the clearance sales on Boxing Day.

The group, created following the £3.9billion merger of Dixons and Carphone Warehouse in the summer of 2014, now expects to post pre-tax profits of between £440million and £450m for the 12 months to May, against £381m the previous year.

Humphrey Singer, group finance director at Dixons Carphone, said: “We had a fantastic Christmas. We had a record Black Friday and our meticulous planning for the period has paid off.”

He said the new superstores would be better for staff and customers, following a good response to the 243 superstores it has already launched.

“Customers prefer shopping in these stores and colleagues prefer working in them”, he added.

Dixons Carphone’s network of stores will reduce to 323 in the UK from 402 and to 15 in Ireland from 27, while it is also cutting the number of standalone Carphone Warehouse mobile stores to 684 from 723 in the UK.

It said that despite the closures, it still aims to have the vast majority of the population within 20 minutes’ drive of one of its superstores.

The overhaul will take place in its next financial year, starting in May, and will cost £50m to refit, with another £70m to cover additional costs, but Dixons Carphone said the plans should boost annual earnings by around £20m.

Seb James, group chief executive, said: “Following the merger, it has become clear to us that customers really like our fully refurbished three-in-one store concept.”

It has already rolled out a raft of three-in-one stores since the merger in 2014.

The merger is expected to provide an £80m financial boost from additional sales and lower costs, with savings of £40m expected in this financial year alone.

Over Christmas, Dixons Carphone said it sold 152,000 NutriBullet blenders and 66,000 cordless Dyson vacuum cleaners.

Mr James said the chain saw the return of the “two-humped camel shape” trading that first emerged last year, with sales peaking on Black Friday and once again in the clearance sales after Christmas.

Dixons Carphone has already started planning for the next Black Friday at the end of this year.

Its festive performance comes in sharp contrast to that reported by Argos owner Home Retail, which earlier this month warned over profits after it said the chain suffered falling sales amid “mixed” trading.

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Ipswich Star visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Ipswich Star staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Ipswich Star account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

The terror threat level is being increased from severe to critical – indicating a further attack is imminent – after the deadly Manchester Arena bombing.

A support worker at sheltered housing in Felixstowe had to move jobs and suffered from PTSD (Post Traumatic Stress Disorder) after a drunk resident ran past her brandishing a knife, a court has heard.

Two new low-cost retail stores are coming to Bury St Edmunds, as a long redundant site is brought back into use.

The full list of award winners, including glory for Suffolk and North Essex, was unveiled at the Chelsea Flower Show, today.

Police are working to establish whether suspected Manchester bomber Salman Abedi was working alone or as part of a wider network as more victims of last night’s attack are named.

Major Jamie Milnes shares what is planned for the Suffolk Show 2017 Military Village.

An Ipswich woman who has lost nine stone in less than a year has inspired health professionals to rethink the way they handle conversations with patients about their weight.

Sir Roger Moore, the longest serving James Bond, from 1973 to 1984, has died of cancer, aged 89, his family has announced..

Designs have been revealed for Capel St Mary’s very first war memorial, which will honour members of the village and surrounding area who lost their lives in battle.

Around 130 eyecatching supercars and sports cars parked up at Audi in Ipswich at the weekend as part of a fundraising car show.

Most read

Most commented

Show Job Lists

Topic pages

Newsletter Sign Up

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24