Dixons Carphone to close UK mobile-only stores

Dixons Carphone has announced that it will be closing all 531 of its Carphone Warehouse phone stores in the UK in a move which will cut almost 3,000 jobs.

Dixons Carphone to close UK mobile-only stores

The group made the announcement today labelling the decision as the ‘next step’ in the turnaround of its UK mobile business.

The small standalone stores, which represent 8% of its total UK selling space, will close on 3 April 2020.



In its statement, Dixons Carphone said: “The business expects almost 40% (1,800) of affected colleagues to take new roles internally, but sadly expects 2,900 redundancies as the businesses are brought together.

“Dixons Carphone will go well beyond legal obligations in financial and other support for all affected colleagues. There’s never an easy time for an announcement like this, but the turbulent times ahead only underline the importance of acting now, to ensure a business fit for the future.”

The move is the next step in its strategy which was outlined in December 2018, to return this part of the business, which is expected ot make a £90m loss this year, to profitability.

The company blamed the need for change on the adaptions in the way people are buying mobile devices and connectivy, alongside replacing their handsets less often and buying them separately or as part of more flexible bundles

Alex Baldock, group chief executive, commented: “Customers are changing how they buy technology, and Dixons Carphone must change with them. We’re underway with a fundamental transformation to do so. Today’s tough decision is an essential part of that, the next step in making our UK Mobile business a success for customers, colleagues and other shareholders.

“Clearly, with unsustainable losses of £90m expected this year, Mobile is currently holding back the whole business. There’s never an easy time for an announcement like this, but the turbulent times ahead only underline the importance of acting now.

“I don’t underestimate how upsetting this news will be for our colleagues, and we’ll treat everyone with honesty, respect and care. We want to keep as many of our Carphone Warehouse colleagues as we can, and expect to find new roles for almost 40% of those affected.

“We’re working hard to look after those colleagues we can’t find new roles for, financially and otherwise. We’ll pay enhanced redundancy, any bonuses, honour their share awards, and help them find new jobs through an outplacement programme. We recognise our responsibilities towards our colleagues and communities, and intend to fulfil them.”

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