Dixons Carphone to close 134 stores

Retailer says net headcount may actually rise as it rolls out 'three-in-one' stores across UK and Ireland

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.