Poor UK sales pull down Carphone
Thursday 28 July 2011
Carphone Warehouse suffered more bad news in the UK as it revealed that its domestic performance had dragged down its European sales.
Just weeks ago, it emerged that the company might shut down its Best Buy "big box" stores. Yesterday, the mobile-phone retailer announced that sales across Europe in the three months to the end of May had fallen by 3.3 per cent compared with a year earlier. Its chief executive, Roger Taylor, blamed British consumers moving to 24-month contracts and a weak pay-as-you-go market for the drop in sales. He added that the rest of Europe had experienced growth. The longer contracts meant customers delayed up to 100,000 renewals in the first quarter.
While its tie-up with Best Buy in the US continues to grow – with connections up 12.3 per cent – the same cannot be said of its Best Buy UK superstores. Carphone revealed last month that losses at the division had almost tripled last year to £62.2m. The company is reviewing the venture, with analysts predicting the stores may be shut down. It said yesterday it was still evaluating the operation and would update the market "in due course".
Yet analysts at Credit Suisse backed the group's performance, saying its sales had come in better than expected in Europe and at its Virgin Mobile France venture. Carphone said there had been a "material impact" for tablet sales in the first quarter, and Mr Taylor added it had been a "satisfactory start to the year".
- 1 Moscow voted the world's unfriendliest city
- 2 The excuses your boss is most likely to believe when you call in sick
- 3 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 4 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
The excuses your boss is most likely to believe when you call in sick
Bono's group has made more money from Facebook investment than from all his music
Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
Wikipedia rocked by 'rogue editors' blackmail scam targeting small businesses and celebrities
More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Senior British politicians tell David Cameron: When dead children are being washed up on beaches, it's time to act
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...
Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...