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UK mobile retailer to trial new incentive scheme

Notorious for "going for the sale" at the expense of other customer satisfaction factors, Carphone Warehouse is trying to find ways of reforming its retail outlets, by trialling a "higher salaries, lower commission" scheme for store managers.

But the reform may not be purely altruistic. The announcement followed closely on the revelations that US retailer Best Buy was going ahead with far more stores in Europe than originally anticipated, in its joint venture with Carphone Warehouse. And the Best Buy deal gives the Americans a half share in CPW retail.

There's also the realistic assessment by CPW boss Charles Dunstone, who recently warned financial markets that he was pessimistic about sales prospects for the Christmas mobile phone market - and also, was anticipating that broadband TalkTalk sales would slow. In a market where sales slow (but profits improve, he expects) commission becomes a less effective incentive for employees.

Retail bosses will receive more basic pay, reports MobileNewsInternational: while London stores will test out a profit sharing scheme.

Depending on success in the London area, the new scheme will be rolled out to all store staff country-wide early next year.