Dixons Carphone has released its first quarterly results since the merger a month ago.
- Dixons Retail saw like-for-likes sales rise 4% in the UK and Ireland, 1% in Nordic countries, and 6% in Greece.
- Carphone's like-for-like sales fell 6%, due in part to difficult trading conditions in Southern Europe.
By continuing to reinforce its service offer, sharpen prices and enhance its multi-channel capabilities, Dixons Carphone is performing admirably in a difficult environment that has seen many shoppers go online.
Apart from sales, procurement and cost synergies, the merger was designed to help both retailers compete more effectively in this difficult environment. With eleven “combined stores” now in operation, we will begin to see the first piece of evidence that the synergies are starting to take effect. Following the confidence boosting news that the company will be promoted into Britain's FTSE 100 index, Dixon’s Carphone will need to continue to deliver on a consistent basis. This consistency will hinge on delivering its promise of being the connected retailer in the connected world.
As a powerhouse in both phones and technology, Dixon’s Carphone’s vision is to be at the forefront of technology in a connected world. A shopper led format redesign has been critical to its success so far. In store initiatives including its gaming bunker and more recently its Smart Tech zone has highlighted Dixon’s Carphone’s Shopper first thinking.
The key to success in the future retailing environment will be to put the ever changing shopper at the heart of all decision making and retailer activities. Furthermore, Dixon’s Carphone must deliver to the digital and social needs of a technologically dependent and socially engaged shopper. As a result, we expect the retailer to plan in the short term, trialling newer and ambitious in store initiatives that cater to rapidly changing shopper demands.