Eyebrows were raised when Carphone Warehouse and Dixons Retail decided to team up last year, but the sceptics fell silent when the newly named Dixons Carphone (DC.) announced its first corporate move this week. The group is to return to the US after signing a joint-venture with US telecoms group Sprint. The two companies have agreed to open 20 stores, but if the trial goes well that number could multiply to nearer 500. However, at that point Dixons will have to stump up $32m and take a 50 per cent stake in the joint venture.
Of the two companies, it's easier to label Sprint as the underdog in the relationship. After its attempted merger with T Mobile fell through last year, the network operator (the third largest in the US) has had to cut jobs.
By contrast, profit forecasts for the UK retailer are on the up, and its share price has climbed 40 per cent year on year as demand for electricals grows and rival Phones4U bit the dust last September. However, the group is keen not to get complacent after recent data showed slowing demand for iPads and weak electronics sales at John Lewis and Argos.
