First day of trading for UK’s biggest electronics retailer following £3.8 billion merger completion. Seven Dixons Carphone stores open today – 23 more by end of the year. All UK Dixons stores to eventually c0-brand
Retailers Dixons and Carphone Warehouse kicked off a new era today as they begun trading as ‘Dixons Carphone’ for the first time following their £3.9 billion merger deal.
The new retail brand was officially listed on the London Stock Exchange this morning – with first glimpses of the new brand logo being displayed across seven of its new combined stores.
The merger has created a business owning 1,298 UK stores and nearly 3,000 globally, with a market value of £3.74 billion and potential revenues of £10 billion.It is also expected to generate savings in excess of £80 million by 2017/18. The two companies began talks over a merger in February, with confirmation of the deal announced on May 15. Shareholders from both voted in favour of the merger at an AGM on July 15, and followed unconditional approval from the European Commission at the end of June.
Carphone Warehouse, formed in 1989 by now Dixons Carphone chairman Sir Charles Dunstone has amore than 2,000 stores in total, with around 800 in the UK. Dixons Retail has around 500 technology stores in the UK trading as Curry’s, PC World and Dixons Travel (airport only). The Dixons brand exited the high-street in 2006.
Dixons Carphone chief executive Sebastien James confirmed at the event that all Currys/PC World stores will have eventually have Carphone Warehouse stores within them. No decision has been made on integration of Currys/PC World stores into Carphone branches, although James said that some larger stores may be suitable for co-branding.
– 7 co-branded store-within-stores opened today including Watford, Oxford Street and Aylesbury (August 7)
– 23 more to co-brand by Christmas
– Plans to rebrand all 3,000 Dixons Retail Group and Carphone Warehouse stores (UK and Europe)
– 43,000 staff employed across UK and Europe
Connected world strategy
A key reason behind the deal centres heavily around exploiting the growing trends of connectivity on multiple devices, both in and outside of the home. Analyst firm Gartner predicts that 26 billion devices (excluding PCs, tablets and smartphones) will be connected globally to the internet by 2020 – whilst Cisco puts this figure closer to 50 billion. That’s an average of eight connected devices per person on the planet.
“I don’t think in future that you’ll be able to imagine that there was a connectivity store that didn’t have a phone store, and a phone store that didn’t have an extended range of products,: Dixons Carphone deputy chief executive Andrew Harrison told Mobile News at the launch.
Examples include TVs and cameras, as well as more unconventional appliances such as ovens, washing machines, central heating, microwaves, dishwashers and even fridge freezers – with the smartphone acting as the remote control. Dixons chief executive Sebastian James described the deal as “a true merger” and one based on “strategic logic”, while Dunstone said the combined firm would be a “new retailer for the digital age”.
Dixons Carphone chief executive Graham Stapleton said in June: “If you bring the vast range of products Dixons sells combined with our connectivity and then think of the way the world is changing in to a very much more internet of things this merger could be fantastic news for customers, and generally, when you have two businesses coming together for customer reasons particularly in the retail space, you have a better chance of success.
“We want to bring the opportunity to connect lots of different products in the home and on the go together so people can really see those opportunities and potential for them.”
Carphone Dixons posted pictures via Twitter this morning displaying the brand new logo from its Oxford Street stores in London – as well as its (Carphone Warehouse) Acton head office. -See below. Dixons head office