Carphone reveals Best Buy megastore plans

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Carphone Warehouse has announced its £90 million expansion strategy for its joint venture with US electronics retailer Best Buy, with plans to open up to 100 megastores by 2013.

The venture, known as Best Buy Europe, plans to open four or five stores in the UK next year, with more planned to follow.

Best Buy Europe stores will act as a separate entity to Carphone and carry their own branding, selling electronics goods from televisions to washing machines as well as mobiles.

Carphone chief executive officer Charles Dunstone said: “We believe Europe is a highly attractive market for consumer electronics retailing.

“Market growth is forecast to be strong, but the customer experience is often poor and we intend to introduce a differentiated proposition with a strong emphasis on service.

“In addition, we will focus primarily on larger stores, of 30,000 square feet or more, where the overall economics are typically more attractive than for smaller stores.”

Carphone also released its Q2 results, revealing a rise in market share while shaving profit margins.

Total connections rose nine per cent to 3.1 million, while subscription connections were up 21 per cent to 1.3 million.

However broadband business failed to live up to expectations with 35,000 new customers falling short of the forecasts of around 45,000.

See Business Watch

 

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