UK's second largest independent mobile phones retailer warned it must follow CPW's lead

Analysts: ‘Phones4U must move into CE or struggle’

Phones4U has been warned that it must follow Carphone Warehouse into the wider consumer electronics space or risk "struggling".

The mobile phone retailer came under attack from several analysts after its rival Carphone Warehouse claimed that it would change the face of consumer electronics retailing, leaving Phones4U looking like a one trick pony.

Referring to Carphone Warehouse’s recent deal with Best Buy, Planet Retail analyst Greg Hodge said: "If Phones4U continues to only focus on mobile phones, it may struggle somewhat." He added that remaining focused on mobile would also leave itself open to uncertainty in the contract sector.

Hodge’s comments were echoed by Pragma Consulting retail analyst Mike Godliman: "It’s a bit one dimensional and too price-led. It needs a rethink of the Phones4U brand, what it stands for and the product offering."

Indeed, it is the last point that Godliman says will be critical to the success of the retailer over the next couple of years. "As the digital market changes, where does that leave Phones4U? Should it be thinking more about the new digital technology in the market?"

He added that unlike Carphone Warehouse, which was positioning itself towards the new future, Phones4U would be particularly prone to the apparently inevitable convergence between the communications and consumer electronics market.

However, Carphone Warehouse’s new marketing director Russell Braterman hit back, saying that the company goes beyond just phones, encompassing "mobile communications and entertainment solutions."

Source: Mad

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