The launch of Best Buy in Europe will not be derailed by the potential demerger of Carphone Warehouse or stark warnings from Best Buy about the severity of the downturn in the US, the retailer has stated.

Although Best Buy warned of a “seismic shift” in consumer behaviour, Best Buy Europe chief executive Roger Taylor said there would be “no effect at all” on the duo’s plans to launch four or five Best Buy Europe stores next year and 100 across Europe by 2012.

“Best Buy has a strong balance sheet and no debt,” said Taylor, who is also finance director of Carphone Warehouse. “We don’t need an excessive amount of capital in terms of our plans next year.”

Carphone Warehouse revealed this week that it was exploring a demerger of its Talk Talk fixed line and broadband business from the retail part. Taylor said the retailer was still committed to rolling out 50 hi-tech Carphone Warehouse stores by the end of next year.

Carphone Warehouse founder Charles Dunstone warned at the interims this week that the next 12 months “represent the most challenging economic climate we have ever operated in”.

The retailer reported 51 per cent EBITDA growth toÂŁ112 million in the 26 weeks to September 27.

Topics