Dixons Carphone’s online sales uplift partially offsets lost store sales
Dixons Carphone saw its electrical like-for-like sales climb by 10% in the 11 weeks to 21 March in the UK and Ireland, but sales declined by 16% in the subsequent five weeks due to the temporary closure of the retailer’s stores following the outbreak of covid-19.
However, Dixons Carphone said its UK and Ireland online business has recovered around two-thirds of the company’s lost store sales.
Meanwhile, sales in Greece were flat in the 11 weeks to 21 March but have since fallen by 40%. Sales in Dixon Carphone’s Nordic region climbed by 5% and 24% respectively in the 11 and five week period as most of the retailer’s stores in the region remained open.
Its closed UK, Ireland and Greek stores would normally be expected to contribute a further £400 million of sales in the current financial year.
Commenting on the covid-19 crisis, Alex Baldock, Dixons Carphone group chief executive, said: “I’m humbled by the speed and skill with which thousands of our colleagues have reacted to this crisis in safely helping millions of customers and securing the business’s future. I can’t thank them enough.”
The retailer has experienced strong growth in sales of home office equipment, gaming products and TVs since the coronavirus crisis started. There has also been an uplift in sales of kitchen products, refrigeration and food preparation items such as bread makers. During the latter part April, personal care products and fitness trackers have also been popular. In contrast, sales of major domestic appliances have declined due to the stalling of the housing market.
Looking ahead, Baldock said: “We’re being prudent in conserving cash, have secured additional funding, and can plan for the future with confidence. We remain committed to our longer-term transformation and will use everything we’re learning through this crisis to build a better business for customers, colleagues and shareholders.”
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