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Long-standing mobile phone retailer Carphone Warehouse has announced that it will close all 531 of its standalone stores on Britain's high streets next month, with around 60 percent of staff (2,900) set to lose their jobs.

carphone-warehouse.jpg

As part of the same company that owns Currys PC World, Carphone Warehouse has 350 mini-shops inside 305 of those stores, but these will not be affected by the changes.

The standalone stores will close on April 3. The move is not related to the coronavirus outbreak, but rather the result of the changing mobile market, according to the firm.

Group chief executive Alex Baldock told BBC News that customers were increasingly buying online and from its big stores, which sell computers and TVs as well as mobiles.
"They can't find all this in the small mobile-only stores that are one-twentieth of the size; they're visiting these less and these stores are losing more money as a result," he added.
The company says the closures represent around 8 percent of its current selling area, and the move is "an essential next step" towards making its mobile business a sustainable and profitable category.
"We have to take the difficult decisions to throw our weight behind the parts of the business that the customers are showing us they want... that's with the big stores and that's online."
Carphone Warehouse and Dixons Retail merged in 2017 to become Dixons Carphone, in a bid to fend off tough competition from internet players like Amazon. However, the online strategy has failed to pay dividends and the merged entity has lost £90 million a year as a result.

Almost 40 percent of staff (1,800) affected by the closures are expected to take new roles in the business, the firm said.

Article Link: U.K. iPhone Reseller Carphone Warehouse to Close All 531 Stores
 

Freeangel1

macrumors 6502
Jan 13, 2020
439
380
I just saw the news coverage over in London. The UK is a mess right now
people standing outside the prime ministers office in full hazmat suits protesting. they are not closing bars and restaurants to limit the spread.

Face it . We are in a long recession

even the president said, Til July or August.

This is why I hope Apple keeps its prices LOW.

I still don't think the $6000 Mac Pro has a chance in a recession like this. But I'll buy one in a year when they cant sell at $3000 dollars.


 
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Falhófnir

macrumors 603
Aug 19, 2017
5,108
5,711
Not surprising, a lot of electronics retailers have packed up their physical stores and gone online only or shut down.
 
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Moonjumper

macrumors 68020
Jun 20, 2009
2,453
2,310
Lincoln, UK
Carphone Warehouse was always an unpleasant place to visit due to pressure selling, including insurance to go with the phone. The £29.1 million fine for insurance mis-selling could well be a contributing factor to these closures (not only the fine, also reduced insurance income). Their only reason for existence was good deals, but they are now easily undercut by the internet.
 
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oVerboost

macrumors 68000
Sep 17, 2013
1,561
1,029
United Kingdom
Echoing the comment a few above, the experience from most Carphone Warehouse stores has never been that enjoyable. They try to push you towards certain phones, certain plans, try to push insurance, try to push tv and broadband packages but when you have a problem they don't want to know anymore.

Online companies like mobilephonesdirect and mobiles.co.uk are taking business away from them as they don't have to employ retail staff and can pass that saving onto the customer. Combined with companies like Apple offering the upgrade program so people are buying the devices as standalone purchases rather than bundled into a contract.

I won't be sorry to see them go (but it sucks if your losing your job obviously), and they'll still exist within Curry's retail stores and online which is probably the direction they should have gone a few years back. Also, the name is outdated and the whole "image" needed a big update which it never got (and probably never will).
 
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Duncan-UK

macrumors 6502
Sep 17, 2006
337
433
I just saw the news coverage over in London. The UK is a mess right now
people standing outside the prime ministers office in full hazmat suits protesting. they are not closing bars and restaurants to limit the spread.

Face it . We are in a long recession

even the president said, Til July or August.

This is why I hope Apple keeps its prices LOW.

I still don't think the $6000 Mac Pro has a chance in a recession like this. But I'll buy one in a year when they cant sell at $3000 dollars.



the UK may indeed be in a mess but at least we aren’t stocking up on guns and ammo!
 
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Stella

macrumors G3
Apr 21, 2003
8,591
5,531
Canada
Timing sucks for these employees, or anyone else who is laid off at the moment: They won't be getting another job anytime soon. What company is hiring at the moment?
 
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Gilligan's last elephant

macrumors 65816
Aug 4, 2016
1,214
911
I just saw the news coverage over in London. The UK is a mess right now
people standing outside the prime ministers office in full hazmat suits protesting. they are not closing bars and restaurants to limit the spread.
If the government orders pubs etc to close, I am sure compensation would be required. By "asking" people to avoid pubs and cinemas etc they are forcing these places to close due to falling customers.
And all the major cinemas have just announced they are closing.
 
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ruka.snow

macrumors 65816
Jun 6, 2017
1,031
2,829
Scotland
Timing sucks for these employees, or anyone else who is laid off at the moment: They won't be getting another job anytime soon. What company is hiring at the moment?

They won't be much worse off on a whole and some will benefit. Redundancy followed by benefits, including rent paid.
[automerge]1584454236[/automerge]
If the government orders pubs etc to close, I am sure compensation would be required. By "asking" people to avoid pubs and cinemas etc they are forcing these places to close due to falling customers.
And all the major cinemas have just announced they are closing.

In my area of Scotland we are more worried about loosing the summer tourist trade. Shops often make there money during the spring and summer and then run a few days a week in the winter. The Scottish government have yet to announce how they will help support businesses. It is not just about the immediate effect of the virus, but how it changes peoples vacation plans for the rest of the year.
 
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ksec

macrumors 68000
Dec 23, 2015
1,664
1,789
I could never understand the business Model of Phone4U and Carphone. They are ( or were ) reselling Phones AND Mobile Price Plan with a slightly lower price .Eventually the carriers or MNO will have to complete with them and lower price. Which means less margin for both of them. Apart from slightly lower cost I dont see any additional services or value they had.

Basically their business model had very little leverage.

Still a little sad to see it go though.
 
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Fatboy71

macrumors 65816
Dec 21, 2010
1,334
237
UK
If I'm honest I'm surprised they hadn't closed years back.

On the few occasions I've went in, enquiring/comparing deals with them, versus going direct to a mobile operators shop (O2, Vodafone, Three shop) Carphone Warehouse have never been able to match or get near the deals I was offered from going direct to a mobile operators shop.
 
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killhippie

macrumors 6502
Jan 12, 2016
379
294
UK
Funny how last nights news about bars and restaurants etc has not reached here, also I'm a but surprised about the hazmat suits post, if you don't live in the country don't assume that what you see in your press isn't click bait, I mean you would think based on what the media says that the US has hardly any testing kits, as is well behind the rest of the world in its testing regime. so if that means if the the numbers, and don't look good for the president his approval rating drops.

The US and Europe about to probably plummet into a deep recession, with so much lending for small businesses to survive while they shut down bars and clubs etc! The Holiday and entertainment and catering industries along with the luxury goods market landscape is going to change radically for us all I would imagine. As to the Carphone warehouse they have been teetering on the brink of collapse for years and most of the stores were within other stores anyway, nobody really buys from them these days with their draconian rules and this is no surprise. They were horrible to deal with anyway, sad about the jobs but I for one wont morn thier demise.
 
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jabbawok

macrumors 6502
Sep 30, 2004
273
26
Worcestershire
My first job was in CPW. Back in the day it was a great company to work for. This was before pre-pay and your minimum contract was £17.50 a month. And yes we were well rewarded for selling insurance. Prepay changed the whole industry very quickly. There was next to no commission on prepay and no one bought insurance.
I wasn’t a very good salesman anyway and when the easier commission dried up I stopped making any money so I left. Fond memories though. They did an amazing Christmas party.
 
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mattopotamus

macrumors G5
Jun 12, 2012
13,930
4,488
I'm sure CarPlay was a real killer for them. No need to upgrade stereos if you have that.
 
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