Phones 4u 'disappointed' at Dixons Carphone merger

Phones 4u 'disappointed' at Dixons Carphone merger

Phones 4u has expressed its disappointment at Dixons Retail’s decision to merge with Carphone Warehouse.

The £3.8bn merger will see the end of Phones 4u’s partnership with Dixons Retail to run mobile concessions in 160 Currys/PC World megastores. The partnership deal will not be renewed when it expires in May 2015. Instead Carphone Warehouse concessions will replace the Phones 4u concessions and Carphone Warehouse will also begin rolling out concessions in Dixons Retail’s remaining 300 plus megastores immediately the merger is completed in August.

David Kassler, CEO at Phones 4u said: ‘I am naturally disappointed that Dixons Retail has chosen to go down this route. I believe Phones 4u has been a strong, proactive partner for Dixons over the last three years and we will continue to add value and mobile expertise in our current Dixons Retail outlets throughout the remainder of our contract, which has a year left to run. 

Kassler said the economic impact of losing the Phones 4u concessions contract, which ends in May next year will be negligible on Phones 4u’s business. He indicated that the company is exploring new concession opportunities with other retailers.

Kassler said: ‘The Phones 4u-Dixons store-in-store arrangement delivered less than 10% of our overall turnover and so the financial impact at the end of the contract will not be significant to our business. Most importantly, we will be helping our customers embrace an ever-more connected world through our new BE.SMART proposition for smart and wearable tech as well as other channels outside our 720 high street stores - including our new mobile and web commerce sites, our ongoing rollout of Samsung Experience Stores and selected new retail and online partnerships which we will now be able to explore.’


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