DIXON HAS ANNOUNCED PLANS TO CLOSE ALL OF ITS 531 STORES ACROSS THE UK AND LAY OF THOUSANDS OF STAFF.

The company will focus on selling mobile devices and connectivity through its shop-in-shops in 305 big Currys PCWorld stores and online. The small standalone stores, representing 8% of Dixons Carphone’s total UK selling space, will close on April 3, 2020.

The business expects almost 40% (1,800) of affected colleagues to take new roles internally, but expects 2,900 redundancies as the businesses are brought together.

The company said today’s announcement is an essential next step in Dixons Carphone’s turnaround of its mobile business as part of its strategy outlined in December 2018, to return this part of the business, which will make a £90m loss this year, to profitability.

They say customers are changing the way they buy mobile devices and connectivity, replacing their handsets less often and buying them separately or as part of more flexible bundles.

Today’s tough decision is an essential part of that, the next step in making our UK Mobile business a success for customers, colleagues and other shareholders.

Clearly, with unsustainable losses of £90m expected this year, Mobile is currently holding back the whole business. There’s never an easy time for an announcement like this, but the turbulent times ahead only underline the importance of acting now.

“I don’t underestimate how upsetting this news will be for our colleagues, and we’ll treat everyone with honesty, respect and care.

We want to keep as many of our Carphone Warehouse colleagues as we can, and expect to find new roles for almost 40% of those affected. 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. We recognise our responsibilities towards our colleagues and communities, and intend to fulfil them.