British electrical and telecommunications retailer Dixons Carphone is planning to shut down 92 Carphone Warehouse stores in the UK and Ireland this year amid profit warning.

The retailer has made this decision to overcome challenges in the mobile phone retail market, as consumers are not renewing their smartphones frequently. The company noted that it will not cut any jobs and will make arrangements to move employees to larger outlets nearby.

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Carphone Warehouse Group chief executive Alex Baldock said: “Right now, with our international business in good shape, we’re focusing early action on the UK.

“In electricals, we’re focused on gross margin recovery. In mobile, we’re stabilising our performance through improvements to our proposition and network agreements. In both, we’ll work hard to improve our cost efficiency.

“We won’t tolerate our current performance in mobile, or as a Group. We know we can do a lot better. I look forward to giving you more of my initial thoughts at our full year results in June, and a fuller update on our plans and progress in December.”

“The company’s shares have already lost 30% of their value and warned that its profits would fall to £382m in the year to April 2018.”

In the past year, the company’s shares have already lost 30% of their value and warned that its profits would fall to £382m in the year to April 2018, 24% down on the £501m posted a year earlier.

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In the year to 16 April, its group revenues increased by 3% while like-for-like were up by 4%.

The company plans to invest around £30m in employees and customer proposition to correct recent underinvestment across the UK & Ireland.

In the coming year, the company expects to make a cost investment of around £30m in these areas across the UK & Ireland, giving its employees the right tools and customers an improved experience.