Carphone mulls ‘Big Box’ options

Best Buy UK, which operates 10 so-called Big Box stores, reported an underlying loss of £62 million, compared to £21 million the previous year.

The business, which launched its first store last year as part of a joint venture with US retailer Best Buy, has invested heavily in marketing and promotional activity in a bid to get the brand off the ground.

But Carphone’s core business, including its European and US mobile phone retail chains, has continued to trade well and it reported a 67% increase in underlying earnings to £63.3 million for the year to March 31.

Carphone originally intended to open up to 200 Big Box stores in Europe by 2013, but this goal was reduced to 100. There is currently one store in the pipeline.

The consumer electronics market has been hit by the spending squeeze with other retailers in the sector struggling, including Dixons Retail, Comet and Argos.

Carphone Warehouse was today expected to deliver a strategy update for Best Buy UK but the company said it is still “evaluating the next steps” for the business.