Carphone Warehouse to close Canary Wharf, Stratford, East Ham and Barking stores
PUBLISHED: 10:00 17 March 2020
Retailer Dixons Carphone has announced plans to shut all 531 of its standalone Carphone Warehouse phone stores in the UK, resulting in nearly 3,000 job losses.
This will affect stores in Canary Wharf, Stratford (where there are two shops), East Ham and Barking.
The group said the shops - which make up around 8per cent of the entire group’s selling space - will shut in just over two weeks time on April 3. The 305 combined Currys PC World stores will remain open, as well as the online purchase facility.
Dixons Carphone expects to make 2,900 redundancies, with almost 1,800 affected staff set to take new roles elsewhere in the business.
The group said the move is “essential” to help turn around its UK mobile arm, which is set to make a £90million loss this year.
Carphone Warehouse group chief executive Alex Baldock said: “There’s never an easy time for an announcement like this, but the turbulent times ahead only underline the importance of acting now.”
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He added: “We’re working hard to look after those colleagues we can’t find new roles for, financially and otherwise.
“We’ll pay enhanced redundancy, any bonuses, honour their share awards, and help them find new jobs through an outplacement programme.”
Dixons Carphone has not yet felt the impact of the coronavirus crisis, but is “preparing for one”.
However, its 29 travel stores have been badly affected by the outbreak due to falling passenger numbers, with profits expected to be reduced by around £5million as a result.
The ongoing health emergency has led to a “notable” rise in demand for fridges and freezers, small domestic appliances and laptops as people prepare for home working and potential self-isolation.
Dixons Carphone said: “We are aware that our stores could experience a significant reduction in sales in the months ahead and we are modelling a range of downside scenarios and planning accordingly.
“We are ready to switch more fulfilment to our online and direct channels and we will manage our costs and cash closely, including a tight control of capital expenditure if necessary.”