Almost 100 Carphone Warehouse stores are to be closed in 2018 as its new boss, Alex Baldock, issued a profit warning.
Baldock said the retailer also needed to adapt to changing consumer habits.
More customers are holding on to their existing mobile phones in turbulent economic conditions, and opting to switch to “sim-only” contracts instead of buy new handsets.
The retail chain’s owner, Dixons Carphone, which also owns white goods retailers Currys and PC World, said that 92 of its 700 standalone Carphone Warehouse portfolio would be closed as a result of a shrinking market for electronic goods and rising overheads, including a higher national minimum wage.
According to Radius Data Exchange, the closures could mean an additional 165,000 sq ft of prime UK retail real estate being vacated, which would bring to the total amount of space lost because of retail store closures in 2018 to 7.2m sq ft.
Dixons Carphone joins the list of troubled UK retailers, which include Toys R Us, Carpetright, Mothercare and Next as well as restaurant chains such as Prezzo, Jamie’s Italian and Byron Burger.
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