The withdrawal of the Samsung Galaxy Note 7 smartphone from shelves appears to have had some additional casualties.

Dixons Carphone’s share price slumped 25% in the wake of the recall.

And some sources suggested that the electricals retailer’s agreement with Samsung to repair phones would hit the firm in the short-term.

While there is much about the Note 7 recall that is still hazy, it is worth reminding ourselves of a few things.

Short-term impacts

Firstly, recalls generally always have a negative impact on share price, but this is typically short-term.

However, this usually hits the manufacturer – this is one of the first times I have seen a retailer be so seriously impacted.

But I expect a speedy recovery.

The recall was due to a design or manufacturing flaw.

As such, the manufacturer should be liable for the costs relating to this, both for the replacement of defective units and their return.

Without knowing the ins and outs of the commercial agreement between Dixons Carphone and Samsung, it is difficult to say if this is the case.

The agreement also usually relates to repair, rather than recall.

This is an important point for all retailers that deal with products that are likely to be recalled, which is more than you might think.

The contractual agreement needs to indicate responsibility clearly.

Retailers really don’t want to be establishing logistics channels for the recall of products that is not their fault at their cost.

Other fish in the sea

Remember that the recall affects the Note 7, and the Note 7 only.

Samsung makes a number of other very good phones that Dixons Carphone sells.

Consumers are also spoilt for choice with other brands that make Android phones.

Android is the dominant operating system for mobile phones, and I think we are now at the stage where we are all really locked into one.

Are we Android or iOS? The personal cost – in terms of time – is significant.

So, if you’re a Dixons Carphone customer that has a Note 7, you are likely to exchange it for another Android phone – Samsung or not.

Retailers that have products that are likely to be recalled should consider how customers are likely to behave.

Are they locked in to a brand or, as is the case with Samsung and Android, something else?

This is important as retailers will need to offer them choice after the event.

The silver lining

And this leads me to another point: clouds can have silver linings.

A recall provides an opportunity for retailers to build loyalty with customers.

If Dixons Carphone can solve shoppers’ problems swiftly, smoothly and with empathy, they can show that they really do care.

A wealth of research shows that if you can recover a service failure well, significant loyalty will be built between customer and retailer.

In an industry where it has never been easier to switch provider – both for airtime and handset – then any opportunity to create loyalty is welcome.

We’re living in strange times at the moment.

Brexit has left investors jittery and Dixons Carphone may be suffering from the same nervousness.

However, a recall like this can be an opportunity – and not just the disaster that investors think.

Dr Mark Johnson, associate professor at Warwick Business School