Dixons' Andrew Harrison returns to ailing Carphone Warehouse

Dixons Carphone has returned group deputy chief executive Andrew Harrison to Carphone Warehouse with responsibility for turning round the struggling business he used to run.

Harrison has stepped down as Dixons' deputy CEO and left the group's board with immediate effect to become chairman of Carphone Warehouse Ltd.

Harrison worked at Carphone for almost 20 years and was CEO when the mobile phone retailer merged with Dixons in 2014. He became group deputy CEO in a post-merger management rejig and Dixons said he would now focus all his attention on Carphone.

Harrison will work with Jeremy Fennell, Carphone's managing director, to revamp strategy. Dixons said Fennell, who joined two years ago, will stay in place. The electronics retailer pledged to simplify Carphone's business on 13 December after declining mobile sales contributed to falling group profit for the first half.

Seb James, Dixons' CEO, blamed high prices for new models and a lack of groundbreaking new features for consumers holding on to their phones for longer. He said options for the business included finding a third party to finance handset sales. Analysts also expect Dixons to close some of Carphone's more than 700 stores.

James said: "I am delighted that Andrew has agreed to take on the role of chairman of Carphone Warehouse. This part of our business, while retaining a high degree of appeal and relevance to customers, operates in a market where customer behaviour is changing. As we reposition our model to enable Carphone Warehouse to flourish in this changing world, there is nobody better qualified or more able to lead this transition than Andrew."