Dixons Carphone is to close 134 stores as it rolls out its three-in-one-store concept across the UK and Ireland, the electronics retailer announced this morning as it issued an upbeat trading statement.
The London-listed firm said it plans to merge its remaining PC World and Currys stores and insert a Carphone Warehouse into them.
The move comes in response to positive customer feedback to the three-in-one store concept and is also designed to boost long-term profits, group CEO Seb James said.
The change in strategy means Dixons will cut store numbers by 134 in its fiscal 2016/17 but James claimed the net effect on sales and colleague levels is likely to be neutral or better.
"In addition, our experience shows that colleagues prefer working in – and customers prefer shopping in – our new three-in-one format stores," he said.
Boosted by record sales on Black Friday – a phenomenon some critics claim is on the wane – Dixons Carphone's like-for-like sales rose five per cent in the 10 weeks ending 9 January 2016.
UK and Ireland sales rose five per cent, the Nordics were up three per cent and southern Europe saw a nine per cent hike.
"I am very happy to be reporting a further year of good like-for-like growth over our peak trading period," James said.
"The two-humped camel shape that emerged last year was further accentuated with an all-time record day on Black Friday and a strong promotional period after Christmas. In all territories we saw continued market share gain, especially in UK mobile."
Dixons Carphone began testing the water for its Carphone shop-in-shop concept in August 2014, when Dixons and Carphone closed their £3.8bn mega-merger.
James said the firm is now investing incremental capital of about £50m in refitting its remaining stores in its home market. The move will lead it to absorb £70m costs in its current financial year but will eventually yield annual savings of £20m, James added.
Managed services project involving Dounreay nuclear site thought to be worth as much as £15m over five years
In a boon for the channel, shares in UK publicly listed resellers and MSPs are on the rise. Here we count down the five stocks that have performed the best so far this year
Amazon Web Services holds pole position in all territories, Synergy Research Group claims
Comms giant picks up Portsmouth-based Cisco and Apple partner