Dixons Carphone shares fall on first day of trading

Dixons Carphone shares fall on first day of trading

Shares in the newly-formed consumer electronics retailer Dixons Carphone fell by more than 3% after its first day of trading. Shares closed falling 10.9p to 337p on Thursday. The £3.6bn merger between Carphone Warehouse and Dixons was announced in May.

The retail group is now operating Carphone Warehouse mobile departments in seven Currys and PC World stores across England. According to the FTSE 250 company, another 23 stores will open by the end of the year. 

While the merger will mean job losses as the two headquarters are combined, new positions will be created in its 3,000 stores.

Sebastian James, chief executive of Dixons Carphone, said that the business was off to a flying start with the opening of its first seven combined shops.

Speaking on the first day of trading on the London Stock Exchange, he said: 'Dixons Carphone will not only help customers to access the technology and the connectivity that is right for them, but also find the expertise and services that bring them to life.'

Kester Mann, senior analyst with CCS Insight, believes that if the business is successful, it could mean a new template for the future of consumer electronics retailing.

'The long-term motivation for the deal is the burgeoning opportunity from the Internet of things,' he told Mobile. Nevertheless, it is important to recognise there are high risks involved in this category, he stressed. 'Dixons Carphone will be one of the European pioneers in connected home solutions at a time when revenue from them is relatively small.'

The newly-merged company has said that it will continue to trade under individual brands, including Curry's and PC World and the Phone House.

'In my view, a multi-brand strategy could prove confusing for consumers as the boundaries between the electronics and mobile sectors continue to blur,' he concluded.


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