Carphone Warehouse ups retail target after profit shortfall

Carphone Warehouse ups retail target after profit shortfall

Carphone Warehouse staff have been asked to redouble their efforts because the company is relying on its retail sector to make up a £10m profit shortfall.

Managers were told in nationwide regional roadshows that profit targets for the sector have been increased from £70m to £80m for the financial year ending 31 March 2010, because other unspecified parts of the business are under performing. ?

Carphone’s retail sector is currently on course to easily surpass its original £70m target and hit £72.5m. The performance bodes well for the industry as a whole, with retail an area previously tipped to struggle this year due to the steep overall drop in consumer spending.

However, Carphone staff will now need to deliver a bumper Christmas to hit the new target.

Carphone declined to comment on which area of the business is under performing. The retailer refuted that TalkTalk is to blame for the rise in targets, pointing out that the fixed-line proposition is run as a separate entity. ?

Carphone’s ‘wireless’ area is also known to have struggled earlier this year. Mobile reported in August that Carphone’s laptop sales were flagging, with contract laptop connections falling to their worst level by 63%, and sales dropping to 1,900 in one particular week.

However, the lull in sales has not stopped Carphone from gambling on a large laptop push this Christmas, as Mobile reported last week. Another sign of Carphone’s increased shift towards laptops occurred when Scott Wheway, CEO of Best Buy Europe, introduced himself in a video message to staff.   

Carphone CEO Andrew Harrison, co-founder Charles Dunstone and retail director Steve Blan, also made video addresses. Blan said of the target shift: ‘This year’s budget is a bit like an expedition to Everest. We are ahead of the pace at “base camp”, which is brilliant… I am looking forward to the best ever Christmas trading period that Carphone has ever recorded.’?

Written by Mobile Today
Mobile Today


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