Jobs set to be lost as Carphone Warehouse announces closure of Galashiels store
Staff at Galashiels’ Carphone Warehouse store are facing an uncertain future following the announcement today that the store will close its doors next month.
The firm will shut 531 standalone stores in the UK on Friday, April 3, and focus on selling mobile devices and connectivity through its 305 smaller shops within Currys PCWorld stores, and online.
The mobile phone retailer says the move is not related to the coronavirus outbreak, but was because of the changing mobile market.
Carphone Warehouse, part of Dixons, expects almost 1,800 of affected colleagues to take new roles internally, but expects 2,900 redundancies in the coming weeks.
The company's standalone stores,including the one in Galashiels’ Channel Street, represent 8% of Dixons Carphone's UK selling space.
It says the move is "an essential next step" in turning around its mobile business as part of a strategy outlined in December 2018.
The firm’s chief executive Alex Baldock said: “Customers are changing how they buy technology, and Dixons Carphone must change with them.
“We’re underway with a fundamental transformation to do so.
“Today’s tough decision is an essential part of that, the next step in making our UK Mobile business a success for customers, colleagues and other shareholders.
“Clearly, with unsustainable losses of £90m expected this year, mobile is currently holding back the whole business.
“There’s never an easy time for an announcement like this, but the turbulent times ahead only underline the importance of acting now.
“I don’t underestimate how upsetting this news will be for our colleagues, and we’ll treat everyone with honesty, respect and care.
“We want to keep as many of our Carphone Warehouse colleagues as we can, and expect to find new roles for almost 40% of those affected.
“We’re working hard to look after those colleagues we can’t find new roles for, financially and otherwise. We’ll pay enhanced redundancy, any bonuses, honour their share awards, and help them find new jobs through an outplacement programme.
“We recognise our responsibilities towards our colleagues and communities, and intend to fulfil them.
“But though this is by far the toughest decision we’ve had to make, it is necessary”
Nobody at the Channel Street store was available for comment today.