Carphone Warehouse to close 92 stores

  oresome 11:49 29 May 2018

Yet another major retailer feeling the effects of changing consumer habits and reduced spending power.

It seems that if there is little in the way of technological advancement, consumers are keeping their old phone longer.


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  oresome 13:47 31 May 2018

One of the problems has been that investors appear to believe that only a company that is constantly expanding is a success.

It's understandable that an investor who puts their money at risk in a business expects to see an increase in the value of that investment over time by way of rising dividends and capital appreciation that at the very least matches inflation and hopefully exceeds it by a margin to reflect the risks involved.

It's difficult for any company to meet that investor expectation by standing still unless they are in a market with significant barriers to entry where they can increase prices without fear of losing trade to competitors.

The issue for many retailers is that they are tied into long leases on the stores with upward rent reviews and falling footfall through the doors and it's difficult for them to cut costs as quickly as the trade is falling off.

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