Electronics retailing supergroup Dixons Carphone (DC) is set to become one of the UK's largest companies, breaking into the FTSE 100.
Commentators have highlighted the combination of Dixons' experience in electrical appliances with Carphone's mobile connectivity, leading to an end-to-end digital platform for consumers. Sebastian James, the CEO of Dixons Carphone, told the Investor Chronicle, "This is our first solo flight in our merged entity and we look to be in extremely good shape."
Dixons' newly implemented pricing model seeks to match online-only prices, allowing the retailer to gain market share. Also, with Phones 4u going into administration, Dixons Carphone has one less competitor to deal with.
With the UK's housing recovery comes a demand for white goods, televisions, and other electronic products, which Dixons has ridden the wave of. DC has also jumped on the growth of the Internet of Things phenomenon, announcing a full roll-out of smart home products by Christmas.
Carphones' sales have actually fallen by six per cent since the same period last year, however James said that "there is no way on earth we could have beaten those [last years] numbers," in reference to 2013's huge iPhone promotion.
Investec has also given Dixons Carphone stock a "buy" suggestion for the past four weeks, highlighting the company's "better-than-expected Q1 performance", "benign competitive backdrop", and "market outperformance in Northern Europe."