Carphone Warehouse to shut 92 stores this year

The firm has 119 stores and employs 1,050 staff here

Carphone Warehouse to shut 92 stores this year

A Carphone Warehouse shop in Dublin city | Image: Samboal/RollingNews.ie

Updated: 16.25

The owner of Carphone Warehouse has announced plans to close 92 stores this year.

The Dixons Carphone Warehouse Group says this decision follows an expected drop in gross margins.

It says: "We expect a further decline in the postpay market against which we expect to increase our share of SIMO and SIM free handsets.

"A lower forecast level of inflation in 2018/19 versus prior year is expected to drive a cstg£15m (€17.2m) lower year on year contribution from network commissions income linked to RPI on mobile customer’s line rental.

"Overall, gross margins are expected to be down, partially offset by cost initiatives.

"We have taken early action here with the planned closure of 92 Carphone Warehouse standalone stores this year."

Dixons Carphone's brands include Currys PC World and Carphone Warehouse.

However, Dixons Carphone Ireland say the closures are in relation to the UK market only, and do not impact the Irish business.

Mark Delaney, managing director of Dixons Carphone Ireland, says: "The business here in Ireland is performing in line with expectations and investment is ongoing in the store network".

Dixons Carphone Ireland says it is continuing to invest in its bricks and mortar stores across the country by creating three-in-one superstores, which bring all brands  - Currys PC World and Carphone Warehouse - together under one roof.

The announcement comes just months after the mobile network created by Dixons Carphone, iD Ireland, was placed into liquidation.

At the time, the company said: "Despite a compelling consumer mobile proposition in an increasingly competitive mobile market, iD Mobile was unable to achieve scale against established operators and its losses became unsustainable."

File photo | Image:  Samboal/RollingNews.ie

As a whole, the group says Irish and UK full year like-for-like revenue is up 2% - with stronger growth in international regions too such as the Nordic countries and Greece.

The company says it also expects to make an investment of around stg£30m (€34.4m) across Ireland and the UK in the coming 12 months.

Alex Baldock took over as group chief executive in April.

He says: "Eight weeks in the business have cemented my optimism about Dixons Carphone's long-term prospects.

"I’ve found exceptional strengths, and though there’s plenty to fix, it’s all fixable.

"Our opportunity lies in making the most of those strengths, which we are nowhere near doing. And we must: nobody is happy with our performance today.

"We’re getting on with it, through a new leadership team and structure that’s promoted top talent, cleared away unnecessary layers and silos, and started to speed up decision-making.

"We’re already giving new impetus to areas crucial to our transformation such as data and analytics, marketing, digital, services and technology."

Dixons and Carphone Warehouse merged in August 2014 to become Dixons Carphone.

The firm has 119 stores nationwide and employs 1,050 staff in the Republic of Ireland.

The group has a workforce of around 42,000 people in nine countries.