Closure of 92 stores blamed on changing shopping habits and handset upgrade stagnation
Carphone Warehouse will need to continue to focus its sales attention online if it is to improve revenues.
That is the opinion of analysts after the decision to close 92 Carphone Warehouse stores across the UK was taken by Dixons Carphone last week in an effort to cut costs.
A growing shift in consumers shopping online and a stagnation in handset upgrades is the key reason for store closures as analysts believe Dixons Carphone aim to adapt to a market that is moving away from the high street.
uSwitch technology expert Ernest Doku said that customers are ultimately becoming more “savvy” and the challenge for the company is to improve the online experience.
He said: “There has been a significant shift in consumers purchasing deals online and being more aware of what is available online that isn’t always on the high street.
“The challenge for them is to improve the online presence and provide customers with more engaging offers.”
IDC senior research analyst Marta Pinto agreed and feels Dixons Carphone needs to bring the most out of the stores that they keep but also push its online business.
She said: “Consumers are now more knowledgable about specs and brands and make informed decisions. They compare prices and go for the best offering, whether in store or online.”
Pinto also pointed to the smartphone life cycle growing as a key reason for the planned closures and CCS Insight senior analyst Kester Mann agreed adding the closures are most likely to stem from the new CEO Alex Baldock who joined in April.
Mann said: “The main challenge is that people aren’t upgrading their devices as they would in the past.
“The new CEO is looking to establish a strategy for the business and the move to close stores could be part of a wider strategy.”