Tesco development 'not a huge threat to Carphonewarehouse'

Posted: 21 April 2009

Tesco's decision to increase its number of in-store mobile phone shops does not represent a big threat to Carephonewarehouse, an expert suggests.

Shaun Collins is an analyst for telecoms company CCS Insight and told MarketWatch that although the move is strategically significant, it should not put the retailer at risk as long as Tesco sells pre-paid deals.

Carphonewarehouse's worry, he explained, would be that the supermarket group "takes its mobile experiment more seriously".

Mr Collins added: "They have the reach, the brand, the customer loyalty and more importantly the club card, which means they know their customers better than any other retailer in Europe."

Stores operated by Carphonewarehouse currently number more than 2,400 in nine countries.

For the 13 weeks ending December 27th 2008, the group's revenues increased by 13 per cent to £1,010 million.

The same period saw its connections go up three per cent to 3.7 million, while subscription connections also rose by three per cent to 1.3 million.

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