ALMOST 100 Carphone Warehouse stores will shut down this year in the latest blow to the high street.
The retailer said it will axe 92 of its 650 of its standalone stores this year as it grapples with changing consumer habits.
Dixons Carphone insisted that no jobs will be lost as workers will be offered the chance to move to larger outlets.
The firm blamed changes in the mobile industry for its poor performance, as cash-strapped customers are holding on to older devices for longer and going for “sim-only”.
New boss Alex Baldock, who replaced the longstanding chief executive Seb James earlier this year, said: “Right now, with our international business in good shape, we’re focusing early action on the UK.
“In electricals, we’re focused on gross margin recovery. In mobile, we’re stabilising our performance through improvements to our proposition and network agreements.
“In both, we’ll work hard to improve our cost efficiency. We won’t tolerate our current performance in mobile, or as a group. We know we can do a lot better.”
The announcement came, as the mobile phone retailer announced disappointing pre-tax profits of £382million, down from £501million last year. It expects profits to drop even further to £300million in 2018-2019.
Shares in Dixon Carphone nosedived by almost 20 per cent in morning trade in London as it warned profits will continue to fall.
The store closures will add to the pain on the high street, with Dixons Carphone adding its name to the long list of retailers – Carpetright, Maplin, Toys R Us and others – to have shuttered outlets in the face of falling consumer confidence.
SHUTDOWN Which high street stores have closed in 2018? Shop closures in full from Mothercare and Maplin to Toys R Us and Carpetright
Just last week, Marks & Spencer announced it will shut a further 14 stores as part of its restructuring plan.
Earlier this month, Mothercare also announced it will close 50 stores in a bid to save the struggling firm – putting hundreds of jobs at risk.
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