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 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 3 Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
- 5 We have six months to save the world, says leading economist
California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
Sepp Blatter resigns: FBI are investigating outgoing Fifa president, claims report
Alton Towers crash: Four seriously injured and 16 guests trapped as Smiler ride carriages collide
Gay teenager 'forced to have sex with his own mother' to 'cure' his homosexuality, campaigners in India say
Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...