Carphone Warehouse.

[Chippy_Tea]

Closing stores but not because of Coronavirus.


Carphone Warehouse is to close all its 531 standalone stores on 3 April, resulting in 2,900 redundancies.

The firm says the move is not related to the coronavirus outbreak, but was because of the changing mobile market.

The mobile phone retailer has shops inside 305 big PC World and Curry's stores and these will not be affected by the changes.

Almost 40% of staff (1,800) affected by the closures are expected to take new roles in the business, the firm said.

Group chief executive Alex Baldock said customers were increasingly buying online and from its big stores - which sell computers and TVs as well as mobiles - instead of its smaller, standalone mobile shops.

"They can't find all this in the small mobile-only stores that are one-twentieth of the size; they're visiting these less and these stores are losing more money as a result," he added.

'Essential next step'

The company's standalone stores represent 8% of Dixons Carphone's total UK selling space.

It says the move is "an essential next step" in turning around its mobile business as part of a strategy outlined in December 2018.

The aim is to return this side of the business, which will lose £90m this year, to profitability.

Talking about the job losses, Mr Baldock added: "I don't underestimate how upsetting this news will be for our colleagues, and we'll treat everyone with honesty, respect and care.

"But though this is by far the toughest decision we've had to make, it is necessary. We must follow our customers. They want help with all technology, all in one place, and this trend is only going to accelerate in a more connected 5G world."

Speaking to the BBC's Today programme, he emphasised the decision was nothing to do with the coronavirus outbreak.

"The coronavirus and uncertain outlook ahead has underlined the importance of acting decisively, but no, the driver here is what we're seeing from customers," he said.

"We have to take the difficult decisions to throw our weight behind the parts of the business that the customers are showing us they want... that's with the big stores and that's online."

https://www.bbc.co.uk/news/business-51923295

 

[Dutto]

I wonder if this closure has anything to do with Brexit?

Just a thought you understand. Definitely not an "I told you so!" or "There will be many more!"

 

[Deathstar]

In some respects it’s true, the mobile market has shifted from a touchy feelie experience to a product marketing decision.
Most people are either on an iOS or Android trajectory, they already know that they want and the model that mobile stores have is that their online deals are better than their in-shop deals.

I for example got my phone directly from Apple and my sim via Uswitch, much better deal than any mobile phone shop.

 

[Chippy_Tea]

I wonder if this closure has anything to do with Brexit?

I would say nothing.
To be honest i cannot remember the last time i bought a phone in CPW or any store selling phones , the last couple we bought have been from Argos you get a huge range and no sales pitch.

 

[Chippy_Tea]

Most people are either on an iOS or Android trajectory, they already know that they want and the model that mobile stores have is that their online deals are better than their in-shop deals.

The internet is killing shops and it will continue to do so - find a phone you like the look of go on youtube and watch several review videos then go online and find the cheapest price for that phone, shops cannot compete with that.

 

[marshbrewer]

Nowt to do with Brexit or, as has already been said, the deadly lurgy.

This had been on the cards since Carphonew Warehouse brought DSG (Dixon's) - why would you have all this duplication of stores? In Grimsby, these is a tiny one within walking distance of a large PC World / CPW; guess which one has the best choice! Add that into online sales gradually taking over and I'm amazed they lasted this long. Obviously, that doesn't really help the employees affected.

 

[peebee]

… This had been on the cards since Carphonew Warehouse brought DSG (Dixon's) …

Absolutely. It's quite amazing it has gone on this long with that name. About half the population wasn't even alive when there was such things as "car phones".

10-7 (okay, so my memory goes back even further!).

 

[LeeH]

Due to Brexit? Don’t make be laugh...

Anybody remember The Link? Phones 4U?

 

[Chippy_Tea]

Obviously, that doesn't really help the employees affected.

They are only closing the standalone shops so the ones in the big PC world type stores will carry on and they have said the staff will have the option to transfer to those.