Dixons, Carphone Combine to Grab In-Store Shoppers

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May 15 (Bloomberg) -- Bloomberg’s Charles Allen breaks down the deal combining Dixons Retail and Carphone Warehouse Group in a bid to fend off online competition. He speaks on Bloomberg Television’s “The Pulse.”

You don't need as many gadgets as you used to because they are all in one.

Even in the mobile phone area, it is not obviously growing.

I am surprised by that.

We all want the latest technology, the latest gadget, the latest washing machine or potentially fridge that is going to be connected to the internet.

I want to differentiate between appliances which is a much more resilient market.

You might get two fridges, but generally it is a replacement cycle.

I met in things like televisions, you used to want to have a cd player, a dvd player and all this.

A lot of these things are now, either you have got a tablet or a satellite receiver and that is it.

The number of gadgets has gone down and we see fewer retailers around.

The competition on the internet companies?

This is an interesting point.

One of the reasons the merger can happen is because the service at dixons has improved so dramatically.

That was always a point of differentiation.

For these things, the big tv with the curved screen or something, you can only really sell it in a shop.

Are you going to buy one of those over the internet?

I am not so sure.

I think the up selling is one of the key points here.

They will be hiring more people to make sure this sort of thing happens.

Together they have about 3000 outlets.

What about cost cutting?

18 million pounds?

There are a couple of things.

They will be able to consolidate the premises a little bit.

Carphone can go into some of the biggest dixons stores.

They are promising to increase the number of shopfloor employees.

You don't need to bang headquarters for one company.

Personnel, management, the chairman is the carphone warehouse figurehead.

He will the ceo.

He is the dixons man and the cfo of dixons remains the cfo of the joint company as well.

Is it a merger of equals?

Genuine mergers of equals tend not to go anywhere.

I think you do need one culture to the really driving the company.

I think carphone has only just sort of got that control.

It bought its business back in best buy about a year ago.

I think dixons is a little bit in the driving seat.

On the other hand, carphone has got this niche area of expertise in the smartphones.

To come back to connected homes, if that is going to work, the smartphone is a key part of it.

Charles, thanks a lot.

Let's turn our attention now to what else is on the radar.

Russia's foreign minister says ukraine is sliding into a civil war.

That will make it impossible to hold legitimate elections on may 25. we spoke to sergei lavrov in an exclusive interview.

In east and south of ukraine there is a war, a real war with heavy weaponry used.

I don't understand something in freedom and fairness?

When ukrainians kill ukrainians,

This text has been automatically generated. It may not be 100% accurate.


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