INSUBCONTINENT EXCLUSIVE:
Image copyrightGetty ImagesCarphone 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.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
"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 TheIndianSubcontinent'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."Selling electrical gadgets on the High Street has been a tough game ever since internet
retailers got into gear a decade ago
Tough competition from the likes of Amazon sparked the deal that created Dixons Carphone in the first place - the 2014 merger of Carphone
Warehouse and Dixons Retail
The plan was that the merged entity would have the financial muscle to make a decent fist of selling online, and save millions by
rationalising the two companies' retail estates
That did happen, but the bricks and clicks plan was too ambitious
the announcement - on a day when so many are distracted by the wider impact of the coronavirus, few will notice the news that 2,900 staff
Dixons Carphone, though, will point to the inevitability of the closures, given the continued losses, and the increasing share of the market
being taken by internet players
The people who are losing their jobs face a desperate few months - few retailers were hiring, and now the coronavirus has put most other
potential hirings on hold.Dixons Carphone added that it remained committed to mobile and said customers would receive the same expert
service in its big stores as in the standalone shops.It added that it was launching a new mobile offer later in the year and everything
would still be available online.Kester Mann, from market researchers CCS Insight
told the TheIndianSubcontinent: "Carphone Warehouse has been caught in the unfortunate crosshairs of lengthening mobile phone replacement
cycles and ongoing apathy on the UK High Street
"It has been clear for some time that something had to give in its business
A greater focus on online sales is a logical move
"With more than twice as many people expected to keep their current mobile phone for longer than their last one, footfall has declined and
mobile phone retailing is tougher than ever
Carphone Warehouse had no option but to make some major changes."
