All 531 Carphone Warehouse stores to close as 2,900 jobs axed

All Carphone Warehouse stores are closing down in a massive blow to the UK High Street.

Major Brit retailer Dixons Carphone has announced it is shutting all 531 standalone Carphone Warehouse stores.

It is also axing 2,900 jobs under the plans, although 1,800 workers – 40% – are expected to find new jobs within Dixons.

Dixons has said it will now focus on selling mobile devices in its 305 Currys PC World stores and online.

It said the plans are part of the "next step in its transformation", adding it plans to launch a new mobile offering "later this year".

It said in a statement: "Dixons Carphone will go well beyond legal obligations in financial and other support for all affected colleagues.

"There's never an easy time for an announcement like this, but the turbulent times ahead only underline the importance of acting now, to ensure a business fit for the future."

Detailing its plans for a new mobile offering, the statement added: "This will include deals they can't find anywhere else, nationwide face-to-face advice, the best range of handsets from the biggest brands and a wide range of tariffs and networks, underpinned by a market-beating price promise."

Chief executive Alex Baldock said: "Customers are changing how they buy technology, and Dixons Carphone must change with them. We're underway with a fundamental transformation to do so.

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"Today's tough decision is an essential part of that, the next step in making our UK Mobile business a success for customers, colleagues and other shareholders."

The closures, which represent 8% of Dixons Carphone's total UK selling space, do not affect the 70 Carphone Warehouse stores in the Republic of Ireland or any operations internationally.

The huge blow to the High Street comes as the coronavirus outbreak grips the UK, with retailers being badly affected by the disease.

Yesterday Prime Minister Boris Johnson urged people, from this weekend, not to visit theatres, pubs and restaurants and to work from home where possible.

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Dixons said it has not yet seen a material impact from the coronavirus outbreak, though it is preparing for one.

It said it is currently on track to meet its full-year 2019-20 adjusted pretax profit guidance of 210 million pounds ($257 million) despite the headwind to profit from Dixons Travel and currency translation as well as for net debt to be lower year-on-year.

"But we are aware the situation may change over the final weeks of the financial year," it said.

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