No layoffs as Dixons Carphone shuts Irish stores

Retail giant Dixons Carphone is to shut 12 Irish stores under plans to roll out electrical superstores merging its three main brands across the UK and Ireland.

No layoffs as Dixons Carphone shuts Irish stores

In total, it will close 134 stores as part of the revamp, but Dixons Carphone said it will relocate all staff impacted to nearby superstores.

The group said it will overhaul all its PC World and Currys stores to relaunch as so-called three-in-one stores, combining PC World, Currys, and Carphone Warehouse over the next year and a half.

Dixons Carphone will see its store numbers reduce to 323 in the UK from 402 and to 15 in Ireland from 27, while it is also cutting the number of standalone Carphone Warehouse mobile stores to 684 from 723 in the UK.

It said it still aims to have the vast majority of the population within 20 minutes’ drive of one of its superstores.

The overhaul will take place in its next financial year, starting in May, and will cost £50m (€65.87m) to refit, with another £70m to cover additional costs.

However, Dixons Carphone said the plans should boost annual earnings by around £20m.

Details of the changes came as the group hailed a “strong” performance over Christmas and edged its annual profit outlook higher.

It said UK and Ireland like-for-like sales lifted by 5% in the 10 weeks to January 9, with the strongest trading day in its history on Black Friday in November and a good start to the clearance sales on St Stephens Day.

The group — created following the £3.9bn merger of Dixons and Carphone Warehouse in the summer of 2014 — now expects to post pre-tax profits of between £440m and £450m for the 12 months to May, against £381m the previous year.

Humphrey Singer, group finance director at Dixons Carphone, said: “We had a fantastic Christmas.

“We had a record Black Friday and our meticulous planning for the period has paid off.”

He added the roll-out of the new superstores will be better for staff and customers, following a good response to the 243 superstores it has already launched.

The merger is expected to provide an £80 million financial boost from additional sales and lower costs, with savings of £40m expected in this financial year alone.

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