Retailer’s CEO claims Phones 4u concessions in Currys and PC World stores only contributed less than 10 per cent of its overall turnover and so the impact “will not be significant to our business”
Phones 4u has said that it is “naturally disappointed” by the £3.8 billion Dixons and Carphone Warehouse merger, but claimed the financial impact will not be significant to its business.
The two companies announced the joint venture, Dixons Carphone, this morning in a move that will create a firm with 3,000 high street stores and annual sales of almost £12 billion. It brings the Carphone, Currys and PC World brands under one umbrella.
In July 2010, Phones 4u announced it had struck an agreement to open concession stores in a number of Currys and PC World outlets. The mobile retailer said this agreement still has a year to run, with the stores continuing to operate as normal until then.
However, Phones 4u CEO David Kassler played down the impact of the deal between Carphone and Dixons, claiming the agreement has contributed less than 10 per cent (£96.3 million) of its turnover and that the financial impact would be minimal. In the year to December 31, 2012, Phones 4u reported turnover of £963.7 million.
“I am naturally disappointed that Dixons Retail has chosen to go down this route,” he said. “I believe Phones 4u has been a strong, proactive partner for Dixons over the last three years and we will continue to add value and mobile expertise in our current Dixons Retail outlets throughout the remainder of our contract, which has a year left to run.
“The Phones 4u-Dixons store-in-store arrangement delivered less than 10% of our overall turnover and so the financial impact at the end of the contract will not be significant to our business.
“Most importantly, we will be helping our customers embrace an ever-more connected world through our new BE.SMART proposition for smart and wearable tech as well as other channels outside our 720 high street stores – including our new mobile and web commerce sites, our ongoing rollout of Samsung Experience Stores and selected new retail and online partnerships which we will now be able to explore.”