Dixons Carphone’s boss Alex Baldock has declared the company is ‘winning online’ as Christmas saw the group continued its pandemic-era boom in sales of electrical items.
The retail giant said the share of digital purchases doubled year-on-year in the ten weeks to January 9 to constitute more than half (53 per cent) of its overall electricals sales and three-quarters of its sales in the British Isles.
Total like-for-like revenues grew by 11 per cent, with the firm saying the largest increase was in large screen televisions, smart technology, health and beauty, food preparation, and ‘all areas’ of computing and gaming.
The retail giant said the share of digital purchases doubled year-on-year in the ten weeks to January 9 to constitute more than half of its overall electricals sales
Internet sales in the UK and Ireland, home to its Carphone Warehouse and Currys PC World stores, shot up by 121 per cent, while they multiplied by 97 per cent in Scandinavia and by 366 per cent in Greece.
Baldock remarked that Dixons Carphone was ‘winning online, where we’re the biggest and fastest-growing specialist technology retailer in all our markets.
‘Our flexible infrastructure and accelerating transformation mean we’ve been able to react ever-faster to changing trading restrictions, while building more lasting and valuable customer relationships.’
Greek sales fell 13 per cent on a like-for-like basis though, as it was heavily impacted by a national lockdown that shut its Kotsovolos brand stores on November 7 and only allowed them to open to customers two days ago.
Lockdown restrictions also had dire repercussions for its mobile revenue in the UK and Ireland, where it plummeted by 40 per cent after the group’s standalone Carphone Warehouse outlets remained closed for much of the two-month period.
Domestic electricals sales still rose by 8 per cent, which the firm stated was evident it could have a ‘strong trading performance irrespective of these restrictions’, and it anticipates full-year profits will be ‘in line with market expectations.’
Dixons Carphone’s UK brands include Currys PC World and Carphone Warehouse
Dixons Carphone warned that it faces an unclear few months, with lockdowns in the UK, Ireland and Denmark currently meaning that large parts of its operations are mothballed with no end in sight.
Despite the uncertainty, Alex Baldock commented that ‘this strong performance makes us more confident than ever that we’re on the right path to create a world-class business for colleagues, customers, shareholders and society.’
The London-based multinational further announced today that Tesco’s finance boss and former long-time Dixons Retail employee Bruce Marsh will become its new chief financial officer in July.
‘He brings a strong track record over many years in retail,’ and in the successful delivery of large complex business transformations in rapidly changing environments,’ commented Baldock.
Dixons Carphone CEO Alex Baldock said his firm was ‘winning online, where we’re the biggest and fastest-growing specialist technology retailer in all our markets’
Last month, Dixons Carphone released its half-year results showing that electricals revenues climbed by 114 per cent, as customers stocked up on home items like desktop computers, games consoles and coffee machines.
When the pandemic started, the firm observed that people were buying a lot more refrigeration products and televisions, but as consumers spent more time locked up indoors, food processors and fitness trackers became popular.
Julie Palmer, a partner at Begbies Traynor, said: ‘Many big-name retailers have been ravaged by the pandemic, so this strong performance is particularly impressive given the company reported its pre-tax profits had more than halved earlier in the year.
‘Despite muted mobile sales, the UK’s lockdown periods have proven a real boom to the company’s online offering as housebound consumers dived in to its home electricals range to stock up on office equipment, TVs, appliances and high-profile gaming consoles.’
Shares in Dixons Carphone ended trading 3.3 per cent lower at 119.3p.
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