Standalone Carphone Warehouse stores bear the brunt of changing consumer habits.
Dixons Carphone is to close 92 Carphone Warehouse mobile phone stores this year.
The company – which operates 1,100 Currys PC World and Carphone Warehouse stores across the UK and Ireland – warned that profits would fall to £300m next year, down from £382m this year.
The fall in profits is attributed to a shrinking market for electrical goods, changing consumer habits (such as increased online shopping) and a rise in the legal minimum wage in the UK.
The news wiped more than £500m off the value of one of Europe’s biggest consumer electronics retailers as shares fell 20pc.
Early action on changing trends
The recently appointed CEO of Dixons Carphone, Alex Baldock, said that the company is hoping to transform itself through investing in areas such as data and analytics, marketing, digital services, and technology.
“Right now, with our international business in good shape, we’re focusing early action on the UK,” Baldock said.
“In electricals, we’re focused on gross margin recovery. In mobile, we’re stabilising our performance through improvements to our proposition and network agreements.
“In both, we’ll work hard to improve our cost efficiency. We won’t tolerate our current performance in mobile, or as a group. We know we can do a lot better.”
The managing director of Dixons Carphone in Ireland, Mark Delaney, confirmed that no stores in the Republic of Ireland would be affected by the closures. “The business here in Ireland is performing in line with expectations and investment is ongoing in the store network,” Delaney said.
The closures come at a time when the high street in the UK has been under considerable pressure with stores being shut by brands including Marks & Spencer, New Look, Mothercare, Carpetright and House of Fraser.
Updated, 4.27pm, 29 May 2018: This article was updated to correct a mistaken reference to stores being closed in the Republic of Ireland, and to include a quote from Mark Delaney confirming that no Irish stores would be affected.