Retail news round-up on May 15, 2014: Dixons and Carphone confirm merger, Burberry gives Bailey £7.5m golden hello, Ann Summers rolls out click-and-collect and more.
Dixons and Carphone give merger green light
Dixons and Carphone Warehouse have confirmed they plan to go ahead with a merger of the two businesses.
The retailers said they believe the combined group will “be able to achieve integrated mobile retailing and procurement synergies, together with cost savings, of at least £80 million on a recurring basis.”
It expects the deliver these cost savings by 2017 to 2018.
Sir Charles Dunstone will be chairman of Dixons Carphone, Roger Taylor, deputy chairman of Carphone, and John Allan, chairman of Dixons will become co-deputy chairmen and Dixons chief executive Sebastian James will run the new group. Carphone Warehouse boss Andrew Harrison will become deputy chief executive.
Dunstone said: “Both Carphone and Dixons have a huge commitment to delivering the consumer the very best service, product and advice around the connected world. We have a deep respect for each other and we see the merger of these two great companies as an opportunity to bring our skills together for the consumer and create a new retailer for the digital age.”
Burberry’s new boss Christopher Bailey to be granted £7.5m ‘golden hello’
UK luxury brand Burberry has given its new chief executive Christopher Bailey a ‘golden hello’ in shares worth up to £7.5m and an annual pay package of up to £8.1m, according to reports. Bailey’s salary includes a £440,000 allowance for clothing and other items, £53,000 more than former boss Angela Ahrendts. He will receive £1.1m in salary, an annual cash bonus of up to £2.2m and £330,000 in pension contributions, The Telegraph reported. Bailey may also be eligible for share awards of £4.4m a year until 2017 under a performance-based executive share plan.
The £7.5m ‘golden hello’ equates to 500,000 shares per year, worth a maximum of £1.8m, for five years. It is subject to performance and will vest between 2017 and 2019. However, it means that 80% of Bailey’s total pay package is dependent on performance. Bailey will get an 80% discount on all Burberry products. In addition, he will give 10% of his remuneration to The Burberry Foundation, a charity he founded with Ahrendts that helps youngsters with their creative ambitions.
Ann Summers rolls out click-and-collect points in 130 stores
UK lingerie retailer Ann Summers has launched click-and-collect services in 130 of its outlets as part of a broader move to boost its multichannel presence. Retail Week revealed the initiative last month..
Phones4U embarks on a smart and wearable tech trial
UK mobile phone retailer Phones4U has ventured into a smart and wearable tech trial in a bid to test consumer appetite for emerging smart technology, The Drum reported. Looking to break into this interest, a BE.SMART range will be brought to 10 Phones4U concept outlets in Birmingham from June this year and could expand to up to 100 stores in the future. It will consist of three sub categories – Live, Play, Train – and encompass products ranging from fitness bands, such as the Sony Smart Band, to smart light bulbs, such as the Philips Hue. It is hoped the stores will allow the company to test the best ways in which to advise consumers on a much wider range of products that connect to smartphones.