2,900 jobs go as Carphone closes down all of its shops

DiXONS Carphone is to close all its 531 Carphone Warehouse stores in the UK and axe nearly 3,000 jobs.

the technology and mobile retailer said ditching the stores, which lost £90m this year, would let it focus on its 300 Currys PC World stores in retail parks.

the drastic measure, which comes into force from april 3, is part of a plan to redirect the business away from mobiles.

it has faced a turbulent three years in its mobile business as shoppers move online and upgrade handsets less often. around 2,900 staff are being made redundant while 1,800 will take new roles elsewhere.

the group’s 70 Carphone Warehouse stores in ireland will remain open and its international operations are unaffected. Dixons said the move is ‘essential’ to turn around its UK mobile arm.

Dixons chief executive alex Baldock said: ‘turbulent times ahead only underline the importance of acting now.’

He added: ‘We’re working hard to look after those 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.’

Dixons said it had not yet seen a large hit from the Covid-19 crisis apart from supply issues, but is ‘preparing for one’. Shop visitors fell by as much as a third at the weekend but retail parks, which often contain supermarkets were more resilient.

its 29 travel stores have been badly affected by the outbreak, and it is expecting profits from the division to take a £5m hit.

Dixons said it had also seen a ‘notable’ rise in demand for fridges and freezers, domestic appliances and laptops as people prepare for self-isolation.

Baldock told the BBC: ‘We have to throw all our weight behind where customers want to shop with us, we can’t wait.’

He has invested tens of millions of pounds in larger stores, training staff and introducing ‘gaming zones’ where shoppers try technology before they buy.