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            Our Strategy

            Dixons Carphone, the market leader in the UK and Ireland, Nordics and Greece, is a business with strong foundations but also with a significant opportunity ahead of it. That opportunity starts with the customer and with what they think of technology.

            Customers find technology exciting but also confusing and expensive. We know they value help to discover, choose, afford and enjoy technology throughout the life of their products. Using strengths that derive from our scale there is no one better placed than us to help them do this.

            The oppurtunity starts with the customer and Dixons Carphone is uniquely placed to help

            Using strengths that derive from our scale there is no one better placed than us to help them do this.

            Building a sustainable business is more is more valuable for its shareholders in the long run

            We intend to build a sustainable business for the long term with significant financial upside versus where we are today; with reinforced scale benefits; One Business with a simpler and lower cost infrastructure; and a profitable more cash generative mobile business.

            Building a sustainable business...

            Building a sustainable business is more is more valuable for its shareholders

            ...more valuable for its shareholders in the long run

            The strategy to deliver our vision focuses on our core, and on four things that matter most: two big profitable growth opportunities in online and credit; revitalising our mobile business; and giving customers an easy experience. This will be delivered through three core enablers; capable and committed colleagues, working in one joined-up business and strong infrastructure.

            Priorities

            Strategic Levers of Value

            Credit

            Credit is a big profitable growth opportunity and the largest and fastest growing segment of services with strong demand in both electricals and mobile. Technology is expensive, particularly at the big-ticket end of the market where we are strongest; our credit makes it affordable, as well as giving customers reason to shop with us. Importantly we already have strong foundations with customer-focused colleagues who are trained experts in credit. We understand responsible lending. This gives us an opportunity to build profitably on our existing proposition.

            Online

            This is another big profitable growth opportunity, where we have strong foundations and headroom for growth. Improving our Online proposition is important because:

            • Online accounts for more than 100% of the growth in the market (electricals and mobile)
            • We are underweight versus the market online despite strong foundations to build on

            We are the largest retailer in the category delivering multi-channel technology at scale. With our online market share below that of our store share we see opportunities to narrow this gap over time.

            We will use what we uniquely have to accelerate online. We intend to achieve this by:

            • Giving customers access to a much larger range accessible through all channels
            • Making it easier to find, buy, and get hold of amazing technology online
            • Focus on smartphone first, the growth channel within online
            • Drive crossover benefits across electricals and mobile via credit and services

            Easy

            We are obsessed with making the customer end to end experience of shopping with us easier through purchase, set up, to delivery and installations, and to resolving queries and issues. We will build a reputation for consistency and reliability and give customers fewer reasons to shop elsewhere.

            We have a clear plan focusing on the services that matter most to customers and that make the most of our strengths and scale. We will help the customer to get the most out of their tech, throughout the life of the product through our services, from connect, protect, set-up, maintain and repair, to trade-in and upgrade. Work is underway strengthening what we already have. Services for us are a means of making our customer relationships stickier and more valuable.

            Mobile

            Mobile is central to our vision. It is the most important category for us, it is our largest, and the most important product to customers and where we are number one in the market. Our challenges are well understood in the market and we are responding, with a clear plan to restore mobile to profitability and cash generation:

            • Reset our relationships with network partners onto a more sustainable footing with increased choice, improved access to best tariffs and improved terms:
            • Radically improved our offer to the customer with the widest choice of handsets, connectivity, ways to pay, accessories and services.
            • Becoming one business to realise both top and bottom line benefits of doing so
            Mobile: Radically improving our offer
            • We are completing the Dixons Carphone merger to become truly one business and realise the top and bottom line benefits of doing so:

            Strategic Enablers

            Capable and Committed Colleagues

            Capable and committed colleagues are our number one advantage. The best assisted selling to customers requires super-helpful colleagues. To deliver this we’ve increased investment in learning and development, creating customer-first training and will relaunch our Dixons Carphone Academy, equipping colleagues with the right tools for the job.

            One Business

            As we move towards being one truly joined up business, this means

            • A joined up customer experience, so the customers get the full benefit of everything we have to offer
            • A joined up business behind the scenes, realising the cost benefits of moving to One Business. We have firm plans across 10 areas, including IT, Supply Chain and central costs, to deliver £200 million of cost savings available for reinvestment, margin progression and to combat headwinds

            Stronger Infrastructure

            We will work relentlessly to upgrade our infrastructure to enable our transformation. In our Supply Chain we are focusing on building consistency and reliability to enable us to keep the promises we make to our customers. For example, we are investing in new Warehouse and Order Management systems and routing capabilities to improve right first-time delivery.

            In IT we will upgrade our infrastructure to enable our Transformation. We are:

            • Focusing our spend in the areas that matter most across the big four levers of value; credit, online, easy, customer experience and mobile
            • Infosec, to deliver a more secure experience for our customers

            We are building in a way that will de-risk execution, led by a new IT leadership team, supported by new and improved partnerships. We are using vanilla, lower risk, proven solutions, minimising time, cost and risk.

            What Matters Most
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