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.
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