Dixons Retail Share Discussion Threads

[mikepompeyfan] 09/6/2014 12:29

I don't think EE hold all the aces here. What is to stop cpw doing a tesco mobile and setting up its own network. They could do that and threaten to undercut EE. I think a compromise will be reached.

[muscletrade] 09/6/2014 08:19

@undervalued....would seem so. On the Carphone thread no one can be bothered to comment at all. They are probably more used to this sort of opportunistic posturing by mobile operators.

[justwondering] 09/6/2014 08:19

I imagine it is just EE flexing there muscles at the merger, saying don't bother asking for a discount, pure poker play

[undervaluedassets] 09/6/2014 08:10

nice little tickle down. buy opp. Not really news is it the EE thing.

[muscletrade] 09/6/2014 07:23

The Telegraph article is primarily skewed towards the potential negative impact on CW while in reality it is not quite that straightforward.
CW have a much wider presence on the high street than EE have or will have and this presence will increase dramatically when CW merges with Dixons.

If Dixons Carphone are not marketing/selling for you then they will essentially be selling against you. So, there is quite considerable potential negative impact for EE too.
Vodafone tried this policy and changed their mind some years later(as conceded by the Telegraph).

Brave call if EE go down this track but I am not convinced.

[mikepompeyfan] 09/6/2014 05:53

The Telegraph story has more than a hint of sensationalism and presumption about it. Would EE really want to lose the sales from 780 cpw and maybe 530 dxns stores ? Probably better to ditch a severely weakened phones4u who will soon lose their dxns outlets l would have thought.



The UK's biggest mobile phone operator EE has moved to reassure retail partner Carphone Warehouse amid fears it is about to hang up on their relationship.

EE, a joint venture between French group Orange and Germany's Deutsche Telekom, is drawing up plans to sell to more consumers directly.

It will announce within weeks the results of a review of its consumer retail strategy.

Orange has signalled its desire for EE to move away from third-party retailers and deal directly with consumers.

Losing its relationship with EE would be a blow to Carphone which also offers handsets and contracts from 02 and Vodafone.

EE said: "We announced a review of our distribution strategy a few months ago and this process is ongoing with discussions continuing with all relevant parties, including Carphone Warehouse who are a long-standing and important partner."

Carphone believes its near-£4billion merger with Dixons Retail will help strengthen its ties with the mobile groups.

Carphone said: "The proposed merger creates the opportunity for significant new value and we're in conversations with all the major operators on how we can mutually make the most of this opportunity."

[mikepompeyfan] 08/6/2014 05:19

Seems this could be good or bad news. Bad if EE end their relationship with cpw but good if they end it soley with phones4u. You would hope the strength and high street presence of a dxns/cpw partnership would be an enticing prospect for them.

EE is poised to pull out of its relationship with Carphone Warehouse in a move that threatens the retailer's £3.6bn merger with Dixons, The Telegraph can disclose.
Britain's largest mobile operator will conclude a review of its consumer retail strategy "within weeks", sources said, with a complete withdrawal from Carphone Warehouse the potential result.
The move would be a major blow to the retailer, which has positioned itself as the best place for consumers to independently compare deals from mobile operators.
It currently offers handsets and contracts from EE, O2 and Vodafone, but the withdrawal of the biggest of the trio would seriously undermine its claims. EE serves more than 30m customers and has a one-third share of the UK market. It is also recruiting subscribers to its 4G network, who typically require a new handset, faster than O2 and Vodafone.
EE has not made a final decision to end its relationship with Carphone Warehouse, sources said. But it would be the result of two of the three possible scenarios under advanced discussion.
The mobile operator is a joint venture between Orange, the former French state telecoms monopoly, and Deutsche Telekom, its German counterpart. Gervais Pellissier, the deputy chief executive of Orange, last week urged EE to "get rid" of third party retailers and deal direct to consumers.
His comments signalled the widespread desire among European mobile operators to cut out middlemen and sell to more consumers directly. They have seen their profits eroded in recent years by regulation and competition and increasingly resent the impact of third party retailers on margins.
A spokesman for EE said: "While we do not comment specifically on ongoing negotiations, we can confirm that we're formally reviewing our distribution strategy, primarily in the consumer space, with a view to fewer, deeper partnerships, based on value and shared ambitions."
EE's review also covers its relationship with Phones4U, Carphone Warehouse's main rival. A source said the mobile operator would end its relationship with one or the other, or both.
Formed by the 2010 merger of Orange UK and T-Mobile UK, EE has been rationalising its retail estate by closing stores where there was duplication. It is now opening 50 new stores to expand into towns where it is not represented in an effort to deal with more customers directly and improve its profitability.
Vodafone is also opening 150 new high street stores over the next 12 months to increase its proportion of direct sales. It has placed its indirect retail strategy under review too, although the last time it pulled out of Carphone Warehouse, in 2006, it changed its mind within three years.
EE would take on risks of its own were it to pull out. Carphone Warehouse's 780 stores make for a bigger high street presence than any of the mobile operators.
A spokesman for Carphone Warehouse said: "We work closely with all the major operators on long-term contracts which align our interests and provide valuable incremental business.
"The proposed merger with Dixons creates the opportunity for significant new value and we're in conversations with all the major operators on how we can mutually make the most of this opportunity."
Carphone Warehouse and Dixons have pitched their proposed union as a "merger of equals" and predicted growth from a push into the so-called Internet of Things, a catch-all for the oncoming wave of household and personal devices, such as thermostats and health monitors, that are controllable via smartphones.
Investors were less convinced and both stocks fell sharply following the announcement of the merger last month. Both share prices have since recovered most of their losses, however.
Shareholders of both companies are due to vote on the merger in July.

[mikepompeyfan] 06/6/2014 12:20

Seb tweet -

Sebastian James @dixonsseb · 15h
Pleased to see level of interest in Dixons carphone from US investors. These fund managers are clever people with a very clear view.

[undervaluedassets] 06/6/2014 10:25

blonde ....It is the amateurs that are short.

With the pros the trend is the other way - they have been buying back their shorts. Check out the graph here:-

www.shorttracker.co.uk/company/GB0000472455/all

The list and graph shows hedgies/banks etc with a short position of 0.5% or more of the outstanding equity.

As you can see the trend is firmly down with only 2.8% of the shares short. The bigger players are closing their short positions not opening more .

All those amateurs (most of the 16%) are going to have buy back their shorts at some point .

It will be especially painful as I just cannot see that there is likely to be much bad news coming out of this company in the coming months.

[blondeamon] 05/6/2014 17:57

16.89% short in May...up from 16.16% in April.

This is shorted LIKE MAD!

Nothing closed so far.

[robo175] 05/6/2014 10:13

Today, Currys & PC World have revealed that, as their TV sales rocket in preparation for the world's biggest football tournament, 64% of Brits are putting their money on Brazil to be the big winners of the competition, with only 36% backing England. Having launched a cash for goals promotion that allows customers to back England for £10 cashback for every goal scored by the home team or Brazil for £5 per goal, the British public have put patriotism aside and backed the tournament host.

To view the announcement in full, please click on the link below and see 'Latest News'

hxxp://www.dixonsretail.com

[billy5] 05/6/2014 09:06

what's with all these single digit trades, any ideas?

[undervaluedassets] 05/6/2014 08:33

yup - this is going to take a few shorters teeth out.

[undervaluedassets] 04/6/2014 10:07

The more I look at the merger the more plausible it seems.

I think the market thinks so too.

Both brands will be kept distinct and separate on the high street; Whilst a unified back office will have the buying muscle that will be accorded to this new electrical behemoth.

Sentiment is shifting here.

[mikepompeyfan] 04/6/2014 08:56

The share price is looking a bit perky atm and why not ? I can see these 'smart tech' zones in shops becoming a must go to place for those keen on the latest trends and gadgets. Pop in and get hands on and see for yourself. That along with the new kitchen gadget zones for women on the back of the fashionable tv cooking programmes suggests dxns are becoming real cutting edge now with their instore shopping experiences. Promising.

[mikepompeyfan] 04/6/2014 06:01

hxxp://hexus.net/ce/items/general/70617-currys-pc-world-leads-way-innovation-new-smart-zones/

PRESS RELEASE
(3rd June, 2014) Currys & PC World, the UK's leading specialist electrical retailing and services company, is launching new SMART Tech zones in five of its biggest stores (Staples Corner, Thurrock, Cribbs Causeway, Stockton, J9) - the first of their kind in the country. The areas will be divided by four category pillars: Smart Home, Smart Health, Smart Watches and Smart Gadgets, providing consumers with a new hands-on experience allowing them to test the most innovative and cutting edge products in one dedicated retail space.

Customers to the stores will be transported into the future of technology as they are immersed in brand new products from some of the leading names in innovation technology, including Heatmiser, Jawbone, NetGear and Sphero. Visitors will be able to get a feel for how the gadgets work and how they reflect the ever-growing need for 'connected' products that link the mobile world we live in with the technological essentials we desire.

Katie Bickerstaffe, Dixons Retail UK & Ireland CEO, said: ""The future is here, right now, and it's connected. Our new SMART Tech offering aims to create a fresh and inspiring in-store experience for customers that showcases major advancements in connected consumer technology. We know that our customers are looking for convenience and have an ever-growing need for connected products that they can access remotely, as well as the latest gadgets, and these innovative zones offer just that. Backed by our colleagues' expertise and comprehensive support services, including installation, they create a new and refreshed way for people to find out what's on offer and determine the right products for them."

Not only will consumers be able to experience the SMART Tech offering in-store, backed by specially trained colleagues, but a new, dedicated space will be visible on the Currys & PC World websites (www.currys.co.uk/smarttech and www.pcworld.co.uk/smarttech) where online browsers can explore detailed product information.

About some of the products the SMART Tech Zones have to offer:

Jawbone

Jawbone has created the UP System - allowing you to understand how you eat, move and sleep through a wristband so you can make smarter lifestyle choices. The wristband connects wirelessly to a new app, UP24, available on iOS and Android, displaying movement and sleep data, delivering key insights, celebrating milestones, and challenging you to make each day better.

Heatmiser

Neo by Heatmiser allows consumers to control the heating of their home directly from their smartphone or tablet providing better efficiency. Featuring 'Control From Anywhere' functionality Heatmiser's 'neoStat' thermostats are fitted into each room and contain a built-in frost protection feature as well as a programmer that can be controlled remotely so your home is at the right temperature for when you arrive there. What's more, adding additional neoStats throughout the home provides multi-zone heating control which can be controlled individually from the neoApp. Neo uses Mesh networking technology to send communication data around the home offering a more robust system than a standard RF system.

Martyn Kay, CEO of Heatmiser says: "Heatmiser offers products that aim to help people in their day-to-day lives. In a world where we are working longer hours, travelling more, and connecting through mobile networks, it is important to offer a service that helps life be more practical. Seeing is very much believing and we understand that giving consumers an opportunity to get a feel for the product will help them make the right choice of purchase."

Sphero

Sphero is a robotic ball and unlike any other game you've seen before. It's a robotic ball gaming device that you control with a tilt, touch, or swing of your smartphone or tablet. Powered with a new engine, Sphero 2.0 is capable of rolling at speeds of up to 7 feet per second meaning users will be able to enjoy games at a new level. With over 30 apps now available for Sphero, you'll never run out of ways to play. Sphero is compatible with iOS 4.0+ or Android devices with operating system 2.2+.

Netgear VueZone

Netgear VueZone is a video system that allows you to keep an eye on things at home or at work whilst you are out and about. Connected to your smartphone, tablet or computer VueZone transmits footage from completely wireless cameras so you are able to check on everything from the kids to the safe delivery of parcels. What's more the night vision capability means you will be able to see and detect motion in total darkness using the included infrared lamp, for total peace of mind.

For further information visit www.currys.co.uk/smarttech and www.pcworld.co.uk/smarttech

About Currys & PC World:

Currys & PC World are part of Dixons Retail plc. Dixons Retail is one of Europe's leading specialist electrical multi-channel retailing and services company, employing some 30,000 people in 10 countries. More than 100 million customers shop with us every year, online and in over 900 Dixons Group stores.

Dixons Retail has built a successful and sustainable multichannel approach to electrical retailing. Focused on the customer, the business offers a comprehensive range of after sales services, including support from Knowhow, the UK's leading provider of technology solutions, support, expertise and repairs.

For more information about Currys & PC World, please visit www.currys.co.uk or www.pcworld.co.uk or www.dixonsretail.com

[mikepompeyfan] 04/6/2014 06:00

Will be very interesting to see if Dxns and Cpw's vision succeeds.

hxxp://www.pcr-online.biz/news/read/analysis-what-does-the-future-hold-for-dixons-carphone/034091

Two of the UK's biggest technology chains hope to merge, with a focus on connected devices and services to pull in recurring revenues. PCR explains what Dixons Carphone's plans are and what the future holds...

UK tech giants Dixons Retail and Carphone Warehouse have confirmed they plan to merge, in a deal worth £3.8bn.

The newly formed group – Dixons Carphone – will be split equally between shareholders of both firms, and is billed as "a new retailer for the digital age".

Dixons Carphone plans to focus heavily on offering Internet of Things (IoT) products and other connected devices, such as home automation solutions, as well as improving customer support services.

Carphone Warehouse currently has 2,000 outlets across Europe, with around 800 in the UK and Ireland. Dixons has 943 stores across Europe – over 500 in the UK and Ireland – but plans to reduce its European store count to 830.

Dixons Carphone will eventually be led from a single UK head office, with Currys and PC World and Carphone Warehouse continuing to operate separately for the time being.

As part of the deal, Carphone Warehouse will acquire all of the shares in Dixons.

Dixons Retail Group boss Sebastian James – who leads Currys and PC World – will become CEO of Dixons Carphone. Carphone Warehouse CEO Andrew Harrison will be deputy CEO.

"We have the incredible capabilities, assets and people needed to pull us into pole position in the connected market," said Harrison.

"What might seem outlandish today will become ubiquitous in the next few years," agreed James.

"Simply selling electrical goods [without connectivity or service] is missing the point for customers.

"The ability to take what we have built in electrical retailing and add the profound expertise of Carphone Warehouse in connectivity would make us a leading force in retailing for a connected world."

Harrison compared the firm's prospective customer service to that of a roadside recovery company.

"We have the opportunity to stand alongside The AA as a firm for when your connected world goes down," he stated.

In its proposal of the merger, Dixons added: "We plan to build on our well-established KnowHow and Geek Squad services to extend support beyond the point of sale and across the entire range of connected and electrical products.

"Through an end-to-end service proposition including product set-up, delivery, ongoing support and insurance, as well as repairs, accessories and recycling, [we will] extend our relationship with customers to drive lifetime value opportunities and recurring revenue."

The deal comes alongside Dixon's latest financial results, which revealed that sales rose three per cent during 2013 and forecasted annual profit to be between £150 and £160m. The merger is expected to save £80m in annual operating costs.

Carphone Warehouse said that it expects the number of new job roles to increase by approximately four per cent following the merger. Dixons Retail anticipates it will cut two per cent of its workforce.

However, some industry figures were unconvinced that the new partnership will provide an engaging enough experience for consumers.

Patrick O'Brien, lead retail analyst at Verdict, claimed the focus on connected devices and customer support was nothing but a "futuristic sheen" to cover up a "cost-cutting exercise".

"This does not mean that it is a bad idea," O'Brien continued.

"Lower costs mean more flexibility to react to changes in the business environment and, more importantly, more clout to fight the likes of Amazon on pricing."

Anthony Lay, owner of reseller AML Midlands, added: "As a business move the merger of the two companies is a good idea, but the focus of the firms is becoming more and more murky.

"Modern day retailers are becoming jacks of all trades and masters of none. Small retailers should concentrate on what they do best and keep at it – such as added service and support."

While Dixons Carphone might be outlining its future in connectivity and customer support, indies believe there will still be room in the market for the smaller reseller and retailer.

[ravin146] 31/5/2014 13:05

...hence why this merger makes sense and allows for a super power group which will become lean and mean against the likes of ao etc. no matter what, unlike other consumer goods like clothes, food and some furniture...consumers want to look and feel the products. I would never buy a tv, fridge etc without actually looking at it. Yes then you ask ok, do that and just buy it online cheaper/available in stock at ao. Well then that's what dixons must improve on price guarantees/greater stock or stock of popular products. It must be more just a high street name, and more than just a part time online business. Looks like we will hang about near 50p until more details come through, broker updates increase so targets and result surprise markets...Gd luck all.

[wanttowin] 30/5/2014 16:30

Tim3, Not surprised to read your issues re stock. I am amazed they have not sorted this problem yet,I posted nearly a year ago re pathetic lack of goods.It smacks of poor management at the very least...

[undervaluedassets] 30/5/2014 14:49

Blondeamon - support and resistance will be support and resistance until they are breached.

That is in the nature of support and resistance.

50p is a line that is only written in the minds of men. It could be breached and left behind very easily.

50p for the largest electrical retailer in Europe is simply the wrong price in my view.

[mikepompeyfan] 30/5/2014 12:02

Here's an interesting concept. How would this affect the dxns share price if implemented ?

hxxp://www.pcr-online.biz/news/read/supermarkets-should-open-tech-retail-concession-departments/034063

UK grocers should take a leaf out of Harrods' book and allow specialist tech retailers to run concession departments in their supermarkets, says Kantar Retail.

Tesco 'scaled back' from tech last year, and although the supermarket still sells tablets and components, it doesn't offer a comprehensive repairs service and lacks experts in stores.

Harrods, however, currently allows Dixons Retail to run its tech department - a move which has seen sales rise some 80 per cent.

Speaking at the European TCG Retail Summit in Berlin, Kantar Retail's Bryan Roberts said, as reported in the print issue of www.ERTonline.co.uk (May 23rd): "I think there's a growing realisation that in the big store [supermarket] environment in the UK, departments like electricals have been turned into very expensive warehousing, with things getting covered in cobwebs reasonably quickly.

"Electronics and appliances is a battle that the supermarkets can't win - they need to have them in-store, otherwise they cease to become a one-stop destination, but they'd be much better shoving most of it online and leaving it to that channel.

"Electrical specialists - like Dixons or Euronics - could be running their departments for them, because they have authority, credibility and service. Why run a department at a loss when you could pass that risk and responsibility to someone who is properly equipped to do so?"

[mikepompeyfan] 30/5/2014 11:56

No profit taking for me. The results on 26th June will be followed by serious analysis of the merger and broker upgrades imo. Dxns and cpw have forecast £80m of savings and the chances are that will be a considerable underestimate imo. There is lots of scope for good news in the next 6 months and l expect us to have left 50p well behind by then. All only my opinion of course.

[blondeamon] 30/5/2014 10:37

It looks like it'll attack 50p soon. I'd take some profits near 50p if I were you, it has always struggled there and safer to sell and buy lower than miss a 1-2p.

[mikepompeyfan] 30/5/2014 06:27

It's not good is it and such a basic problem you'd think they'd address it.
Let's hope Charles Dunstone and his senior staff from cpw are invited to take a fresh look at the way dxns operate.
I made the same comments earlier in my comparison between the way they trade and the way Lidl and Aldi do.
They need a new sort by filter to differentiate between items held in store for collection, available for immediate delivery and dispatched in 2-4 weeks.
On the bright side though, the more inefficient they are now the more room there is for improvement and profit growth in the future. Better than buying into something already operating at maximum efficiency ;-)