Dixons Carphone profits jump by 17%

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The 17% profits jump seen in the recent Dixon’s Carphone announcement is a pre-Brexit performance dividend that has largely been the result of consolidation activities of the £3.8 billion merger with Carphone Warehouse that has established its economies of scale as the biggest player consumer appliances and electronics goods.  In a competitive market where consumers can increasingly purchase goods online and from alternative online outlets, Dixons Carphone has maintained its brand and high street sales with Currys PC World, Carphone and  over 40% outlets in Northern Europe brands.   Their business model is impact both in the likely fall in consumer purchasing spend in a recession that is likely to follow Britex now and whether longer term EU trade tarrifs impact Dixons business model in Europe from export or having to refocus operations from UK to EU locations.

It is some degree ironic that the economies of scale leveraged by Dixons carphone and the single European market may now in the long term create operating issues as removal from that market prevents operational scale benefits.

 

June 29  2016