Dixons Carphone is set to cut 800 positions from the company as it looks to further integrate its online and retail operations. The company says it is streamlining its store management structure so that senior executives work in the electric and mobile divisions and focus on the customer experience, regardless of the channel in question. As a result, positions such as Director of Retail and Deputy Director will be replaced by new roles such as Director of Sales, Director of Customer Experience and Director of Operational Excellence.
Simplified management
CEO Alex Baldock put an omnichannel strategy at the heart of his transformation agenda, which saw 531 standalone Carphone Warehouse stores close earlier this year as resources shifted to larger '3-in-1' locations and Online Dixons Carphone is the UK's latest mobile phone retailer, but it has struggled to keep up with changing consumer habits. A saturated market and longer upgrade cycles reduce contract renewal rates, making SIM-only pricing and SIM-free phones more popular, reducing margins. Mobile sales fell a fifth last year, but the company says closing Carphone Warehouse stores was a big step forward in eliminating lost cell phones. He said that small outlets cannot meet the changing consumer demand that would be better served by its larger stores and online platforms. The internet's turnaround has been accelerated by the coronavirus pandemic, and sales of electrical products surged during the lockdown. The company hopes that a more integrated approach will also help drive online revenue on mobile devices. He previously said that any staff affected by the job cuts can apply for positions on ShopLive, an online service that provides advice to customers via a video link. "We remain committed to our stores as part of an omnichannel future, where we bring the best of online retail and shopping to our customers," said Mark Allsop, COO of Dixons Carphone. “In this context, we want to empower our store management teams, create a flatter management structure and allow our customers to shop with us, however they wish. This proposition will ensure that in-store roles are focused on delivering a seamless customer experience and exceptional service across all of our customer channels, whether online or in-store. “Unfortunately, this proposal means that we have now started consultations with some of our colleagues in the store. It was not an easy decision and we will do our best to look after those colleagues for whom we cannot find new roles, financially or otherwise.