Digital cameras are being taken off the shelves at Dixons Carphone and being replaced by flat-screen TVs in a bid to turn around the struggling business.
In a sign of shifting consumer habits, the High Street chain has decided it is stocking too many cameras because shoppers are using mobile phones for their snaps.
Chief executive Alex Baldock said there had been a decline in those wanting to purchase state of the art cameras as mobile phone technology has improved.
Digital cameras are being taken off the shelves at Dixons Carphone and being replaced by flat-screen TVs in a bid to turn around the struggling business
Many phones also come with editing software which can make pictures taken by even the most amateur photographer seem more professional.
Instead Dixons plans to fill the floor-space taken up by cameras by bringing in more flat-screen TVs as football fans splash out to watch England in the World Cup.
‘More photos are being taken than ever before but they’re being taken on mobile phones,’ Baldock said.
‘Cameras are taking up too much space in stores so we’re bringing in more large-screen TVs, for example, which are flying off the shelves right now because of the World Cup.’
Dixons started life as a photography studio in Southend in 1937. It went on to sell cameras and later laptops and computers after it bought PC World in the 1990s.
In 2014 it merged with Carphone Warehouse and is now worth £2.3billion.
Dixons started life as a photography studio in Southend in 1937. It went on to sell cameras and later laptops and computers after it bought PC World in the 1990s. In 2014 it merged with Carphone Warehouse and is now worth £2.3billion
Profits at the electronics retailer sunk by 24per cent to £382million last year, in line with expectations following a warning, and are expected to fall further to £300million this year.
Same-store sales edged up 2per cent in its UK business, while group revenues increased 3per cent to £10.5billion.
It is now closing 92 Carphone Warehouse shops as it deals with flagging mobile phone sales, as consumers keep their handsets for longer.
Baldock, who is just 80 days into the role, took over from Seb James, who has left to run High Street pharmacist Boots.
The 47-year-old was highly critical of former management when he joined, announcing drastic plans to overhaul the business which wiped £556million off the company’s value.
‘We won’t tolerate our current performance in mobile, or as a group. We know we can do a lot better,’ Baldock said at the time.
Last week the firm admitted it had been hit by a data breach involving unauthorised access to as many as 5.9million customers’ cards.
Baldock insisted he was taking responsibility for Dixons Carphone’s performance and denied attacking previous management.
‘What we talked about at the time was some of the things that were getting in the way of performance. I didn’t personalise it then and I’m not personalising it now,’ he said.
Dixons Carphone chief executive Alex Baldock said there had been a decline in those wanting to purchase state of the art cameras as mobile phone technology has improved
‘I’m in charge here, I’m the chief executive and I’m responsible for putting everything right that needs to be put right and… for going after the opportunity that we have here.’
The former Shop Direct boss also snapped up almost £250,000 worth of shares in Dixons Carphone last night, in a sign he was confident his strategy will pay off.
He bought 125,533 of shares at 199p each. But analysts queried Dixons Carphone’s decision to keep hold of the mobile phone business.
Patrick O’Brien, of research firm Global Data, said: ‘As people hold on to their phones for longer, with many switching to cheaper sim-only deals, Dixons decision to merge with Carphone Warehouse in 2014 looks increasingly flawed.
‘Carphone Warehouse, undoubtedly, got the better end of the deal. Baldock remains upbeat, claiming that everything is fixable, but he has a tough job ahead.’