Currys says it has now done three quarters of the spending it needs to do to transform itself into an omnichannel business that serves technology customers for life, whether they shop online, in-store – or both. The full benefits of the transformation, it says, are yet to come, while capital spending will peak this year at £170m before normalising at 1.5% of sales in the future.
It now aims to grow its sales, selling more to existing customers while delivering the services that they want, and to boost profitability. The retail business is predicting full-year pre-tax profits of £161m and is now starting a £75m share buyback programme. It says it has planned well for the peak trading season, amid supply chain disruption and expects sales to be “robust”.
The retailer, previously known as Dixons Carphone, is now trading under one Currys brand following the integration of the Dixons and Carphone Warehouse businesses. Today, in an investors day trading update, it reported a 1% fall in like-for-like sales in the first six months of the financial year, to October 30. Sales in its domestic UK and Ireland market fell by 3%, while international sales were flat thanks to 8% growth in Greece, which balanced out a 1% fall in sales in the Nordics.
Currys’ sales figures have fallen back against a strong 2020, when shoppers went online to buy in lcokdowns. But it emphasised the two-year comparison, with sales 15% up on pre-pandemic 2019, and with 11% LFL growth in the UK and Ireland. Currys says that sales started out strong in the first half of this year with pent-up demand from shoppers buying in-store after lockdown.
Currys sells online and through 829 shops in seven countries. It trades as Currys in the UK and Ireland, as Elkjøp in the Nordics and as Kotsovolos in Greece. Its previous trading name, Currys PC World, is ranked Top50 in RXUK Top500 research.
Sustainability
Currys says it will reach net zero emissions by 2040, as it reduces its impact on the environment both in its operations and in its supply chain. It says that it both sells products that help to save energy, reduce waste and save water, and that it repairs, recycles and reuses technology in order to give it a longer life.
Operations and logistics
At the same time, Currys launched an on-demand delivery service, offering 30 minute delivery in London of small technology items, from printer ink to chargers, from a range of 1,800 products. The new service is via Uber and will run from 15 shops in London from November 15.
Mark Allsop, chief operating officer at Currys, says: “The world has shifted to a hybrid way of working and more customers are demanding greater convenience and speedier delivery to get their hands on tech. As the UK’s number one tech retailer, we want to make it easy to shop, for all of our customers. We want customers to get products in their hands and homes as soon as they want them – right now, with super-fast delivery! We already have a one-hour online Order & Collect service, and pioneered the 24/7 video shopping service, with our ShopLive offer. This new ‘from store to door’ delivery pilot with Uber is the next step in our exciting omnichannel journey.”
