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12 Carphone Warehouse Group plc Annual Report 2011
CPW Europe
• CPW Europe is the largest independent
mobile retailer in Europe, with
2,429 stores at March 2011 and
well-developed online channels.
• Its specialisation in combining
hardware, connections and services,
and ongoing investment in high quality
and well-trained consultants, make
it ideally placed to benefit from the
evolution of smartphones and other
areas of complex technology.
• Most of its stores are between 500
and 1,000 sqft with an average of
approximately 620 sqft.
• The business has been developing
‘Wireless World’ stores, which are
generally larger than traditional format
stores, typically 1,000 sqft to 1,600 sqft.
These stores have a broader range
of products and services, as well
as dedicated Geek Squad agents to
provide advanced technical support.
• More recently, the format has been
adapted to fit into a smaller space, in
the form of ‘Wireless World Essential’
stores, which also focus on a broader
range, but typically in a 500 sqft to
1,000 sqft format.
Best Buy Mobile US
• Best Buy Mobile offers the same expert,
impartial proposition as CPW Europe,
and benefits from the scale and brand
of Best Buy.
• The business has had remarkable
success in a market in which the
customer experience in mobile phone
retailing has lagged that in Europe,
increasing market share from around
1% in 2006 to around 5% in 2010.
• At March 2011, it operated through
190 stand-alone stores, with a similar
format to ‘Wireless World’ stores in CPW
Europe, and 1,101 branded stores within
Best Buy’s ‘Big Box’ stores. It has plans
to open a further 150 stores in the coming
year, with a five year target of 600-800
stand-alone stores, and also continues
to develop its online channels.
Best Buy UK
• The joint venture launched six stores
and an innovative online platform
during the year, with five stores
scheduled through to summer 2011.
• We have used these platforms to
trial routes to market for consumer
electronics in the UK, and are now
evaluating the next steps in our
multi-format/multi-channel
consumer electronics strategy.
BUSINESS REVIEW
BEST BUY EUROPE: OVERVIEW CONTINUED
BACKGROUND
Best Buy Europe is a 50:50 joint venture with Best Buy formed in June 2008, when Best Buy
acquired 50% of CPW Europe, including its profit share in Best Buy Mobile US. The venture
draws on the innovative and customer-centric heritage of both businesses, and combines
the Group’s expertise in delivering connected products and services with Best Buy’s retailing
excellence and scale. The business has retail operations in nine European countries, primarily
through The Carphone Warehouse and The Phone House brands, and more recently through
the Best Buy brand in the UK, together with its profit share in Best Buy Mobile in the US.
2007 2008 2009 2010 2011
5
4
BEST BUY MOBILE US
STORE GROWTH
Stores-within-a-store
Stand-alone stores
Online platform
Alongside its extensive
store portfolio, each of Best
Buy Europe’s businesses
has well-developed online
channels.
United Kingdom
Own stores: 805
Ireland
Own stores: 78
Belgium
Own stores: 83
Spain
Own stores: 403
Franchise stores: 61
Portugal
Own stores: 137
Franchise stores: 5
CPW EUROPE STORE PORTFOLIO
Sweden
Own stores: 102
Franchise stores: 10
Netherlands
Own stores: 120
Franchise stores: 71
Germany
Own stores: 179
Franchise stores: 43
France
Own stores: 279
Franchise stores: 53
39
1,023
6
183
77
1,070
190
1,101