Laura Barnes takes a look at what Dixons Carphone's drive into the connected home market means for other retailers

BLOG: Get yourself connected

After months of discussions, Dixons Retail and Carphone Warehouse have finally announced that they plan to merge in a deal worth £3.8 billion. But how will ‘Dixons Carphone’ impact the rest of the tech retail channel?

The announcement revealed that connected devices and their associated services will be the key focus area for the new business.

Sebastian James, Dixons Retail Group boss, has commented: “The ability to take what we have built in electrical retailing and add the profound expertise of Carphone Warehouse in connectivity would make us a leading force in retailing for a connected world.”

It seems the retailer will offer Internet of Things (IoT) products such as smart appliances – quite different from what’s on offer at your local PC store.

For the time being, IoT is still a pretty niche market. However, a recent forecast by Cisco reveals that the IoT market is set to generate $613 billion in global profits. $28.4 billion (£16.94 billion) is estimated to come from the UK, with some 50 billion ‘things’ predicted to be connected globally by 2020.

While a lot of indie retailers may not initially be competing directly with Dixons Carphone, the new retailer’s drive into the connected home market is a clear indication of what the future of tech retail is set to look like.

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