Carphone Warehouse 2001 Annual Report Download - page 6

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The Distribution business enjoyed a strong performance
generating total revenues of £1,079.1m against £685.8m in the
previous period and contribution of £101.2m compared to £63.1m
in the previous period, an impressive growth of 57% and 60%
respectively. These results clearly endorse our Distribution growth
strategy of building market share, expanding our store portfolio,
growing our online sales and attracting high value customers.
The revenue streams for the Distribution business are divided
into Retail, Online, Insurance and Wholesale and are derived from
the sale of mobile handsets, accessories and other telephony
products and the provision of insurance services.
Our Retail business connected over 3.6 million customers in
the period, reflecting an increase of 65% on the previous period.
This growth came from both high value subscription contracts
where handsets are sold to customers who enter into airtime
contracts and pre-pay where customers pay for airtime in advance.
Despite the significant increase in the demand for pre-pay
handsets over the last 18 months, we have continued to perform
strongly in the European subscription connection market. Over 43% of
Review of operations
our retail and online connections were to these high value customers.
The Retail business has a store portfolio of 1,059 across Europe
in contrast to the 631 (excluding Tandy) stores at the same time
last year, an increase of 68%.
In the UK we have now successfully integrated the Tandy
portfolio and have converted over 150 stores to the Carphone
Warehouse brand. In addition we have successfully opened 40
new stores, particularly in out of town retail parks and key high
street locations.
Our focus in France has been to further establish The Phone
House brand and we have increased our store portfolio by 37 to
140, including the acquisition and conversion of a portfolio of
stores situated in key shopping centres across France, acquired
from Multiples Clothing.
In Germany we have invested significantly and grown the
store portfolio from 6to 95 ideally positioning us to develop our
brand proposition in this strategically important market.
In Spain we increased the store portfolio from 84 to 113.
Our focus during the period has been organic expansion and the
Distribution
Strengthening
customer connections
The strong performance in our Distribution
business reflects our strategy of building
market share, expanding our store
portfolio, growing our online sales and
attracting high value customers.
one stop shop
Czech Republic 21
France 140
Belgium 46
Germany 95
Holland 77
UK 411
Ireland 24
Spain 113
Portugal 33
Poland 2
Sweden 52
Switzerland 16
Italy 7
Hungary 11
Stores
by country