4/28/2010 11:38:00 AM
Carphone hits £75m retail target
Carphone Warehouse completed a bumper year in retail, reaching its target of £75m just weeks before announcing its annual financial results.
In October 2009, staff were told that the retail division of the company would be expected to make up a £5m profit shortfall because other parts of the business were underperforming (see 30 October 2009 issue).
Profit targets for the sector were increased from £70m to £75m for the financial year ended 31 March 2010.
The independent retailer emailed managers last month informing them of their success in meeting the target.
Separately, Carphone has announced a bonus of an extra week's wages for all its retail staff, which will be paid in June.
The move comes after staffers were told last April that they would be given a bonus in 2010 if Carphone performed ahead of expectations. They did not receive a pay deal in 2009.
One staffer said: 'I'm looking at it as a Christmas bonus because we did not get anything for this Christmas just gone.'
The retailer completed a demerger with its broadband and landline business, TalkTalk, at the end of March, which resulted in the spinning off of TalkTalk into a separate company.
The news of bumper profits bodes well for Carphone's now purely retail estate, which includes Best Buy UK, the US retailer, which is due to open its first UK store this week.
Meanwhile, the independent retailer is restructuring and expanding its trading and buying teams, headed up by chief commercial officer Graham Stapleton.
Tim Nolan has recently been promoted to commercial director of wireless after working for the company as a consultant. Carphone is looking to recruit a further five to six new members of staff to the department.
One source said: 'It is very interesting to see what they are doing with their buying team because it seems like they are looking at buying in a very different way.'