LONDON (Reuters) - British retailer Dixons Carphone (DC.L) said it could achieve cost savings earlier than previously forecast following the merger of Dixons Retail and Carphone Warehouse two months ago.
The retailer held its first strategy day after the all-share merger between Europe’s No. 2 consumer electronics retailer, Dixons DXNS.L, and Europe’s largest independent mobile phone firm, Carphone Warehouse CPW.L, on Wednesday. It said the group had made fast progress.
The annual cost savings target of 80 million pounds ($128.64 million) by 2017/18 remains in place, centered around head office, people, store and commercial cost savings.
“Not formally changing the 80 million pound synergy benefit today but now firmly a minimum - and should be achievable faster,” the firm said in a presentation, adding some of its biggest decisions on cost and structure had already been made.
Shares in the enlarged group were broadly flat at 367.7 pence at 1009 GMT (0609 EDT), almost 6 percent ahead of its opening price on Aug. 7, the new group’s first trading day.
The company said 20 Carphone stores opened within Dixons outlets were performing ahead of expectations with no evidence of material cannibalization of either operator’s sales.
A total of 30 such stores will have opened by the end of October, the firm said.
Reporting by Neil Maidment; Editing by Elaine Hardcastle