Losses are rising at the fledgling Best Buy UK business but shoppers like the new arrival in the electricals sector, Carphone Warehouse revealed.
Carphone, which launched Best Buy in the country in partnership with the US giant, said more investment is planned in Best Buy and that it will lose between £50m and £55m this financial year rather than the £40m to £45m previously expected. Best Buy UK made a loss of £29m in the first half.
Carphone chief executive Roger Taylor said: “Customer response to our first Best Buy branded big-box stores has been overwhelmingly positive, with the sixth store opening in Derby today.
“With yesterday’s launch of the transactional website, Best Buy gains national reach and is able to compete as a truly multichannel retailer.”
Best Buy Europe – which includes the Carphone Warehouse chain the UK and Phone House stores – generated an 81% rise in EBIT to £58m in the six months to September 30. The retailer delivered sales of £1.7bn in the period – down 0.4%.
The retailer reported that Carphone Warehouse and Phone House delivered a like-for-like sales rise of 2.4% and EBIT advanced 56% to £44m. The Best Buy Mobile operation in the US contributed £43m to first half profits and in the full year is likely to make as much as £95m compared to £55m expected previously.