When Carphone Warehouse and Dixons joined in a ‘merger of equals’ in 2014, the objective was clear: to become a full blown electrical outlet geared towards the internet of things, selling everything from fridges to mobile phones.
The combined force of the two high street stalwarts would create ‘significant synergies’ - £80m of savings as well as increased buying power with big suppliers as it moved towards an end-to-end service model. Deputy CEO Andrew Harrison compared the company to an AA or RAC as an ‘an emergency service for the connected world,’ offering everything insurance, advice and support as well as the products themselves.
The honeymoon's officially over. First half profits were £61m this year, a dramatic tumble from last year's £154m. The share price, meanwhile, has fallen by nearly half over the last 12 months.