Today Dixons and Carphone warehouse announced the deal. The two firms will merge and create a europan giant in consumer electronics.
In Sweden this might mean Elgiganten wins the jackpot and gets a perfect complement for it’s already successful multichannel business.
Carphone Warehouse operates as The Phonehouse in Sweden, the company’s only market in Scandinavia. As in the UK, The Phonehouse tends to have shops on High Streets and in malls, while Dixons-owned Elgiganten is mainly located in retail parks.
Officially the earnings for Dixons are greater presence in the fast growing segments phones and pads. Carphone Warehouse will get better purchase prices from the merger.
But, as a complement to Elgigantens multichannel-business, The Phonehouse could also become a convenient click-and-collect site for Elgiganten-products. And get a full coverage of malls and city centers.
In Norway, Elkjøp, has tried out the Elkjøp Express stores for 24 city and mall locations.
Now they might get 110 stores for free in Sweden. And Elgiganten, who is already dominating swedish consumer electronics, will then be a real giant. Phonehouse’s turnover was 1,1 billion SEK last year, Elgiganten’s 7,8 billion SEK.
This is how the swedish CEO commented the UK announcement:
”A merger of Carphone Wearhouse and Dixons would mean a big upside for us. Phone House has 110 stores in Sweden, which is well located in shopping centers and on high streets . Telecommunication is an important category in which we are constantly looking for new opportunities that can generate growth and a merger would give us incredible opportunities for a significant increase in our market share, but it is important to remember that there are many formalities to be put in place , says Niclas Eriksson, CEO of Elgiganten.