Dixons Carphone online sales soar but warns on missing profit forecasts

2754
Dixons Carphone online sales soar but warns on missing profit forecasts
While all Dixons Carphone stores have been closed since March 24, it said it has been seeing "very strong" online trading to help offset the lost store trade.
// Dixons Carphone boasts strong online trading but warns of coronavirus-induced sales falls
// Online trade jumped 72% as Brits raced to buy laptops & TVs to prepare for the coronavirus lockdown
// However, even with the online boost, Dixons Carphone warned that it could miss annual profits forecasts

Dixons Carphone has revealed that electrical sales soared by more than a third in recent weeks as Brits raced to buy laptops and TVs to prepare for the coronavirus lockdown.

The group said UK and Ireland like-for-like electrical sales surged 35 per cent higher in the three weeks to March 21, including a 72 per cent jump in online trade as shoppers increasingly shunned stores.

It saw surging sales of equipment for home working, such as laptops and printers, as well as TVs and gaming consoles, while fridges, freezers and kitchen appliances were also in high demand.


READ MORE: 2900 jobs at risk as Dixons Carphone closes Carphone Warehouse stores


Dixons Carphone posted a 10 per cent hike in overall UK and Ireland electrical sales over the 11 weeks to March 21, with total sales up four per cent including its international arm and struggling mobile business.

While all its stores have been closed since March 24, it said it has been seeing “very strong” online trading, which is helping offset the lost store trade.

However, it said the closed stores had been expected to contribute around £400 million of sales for the rest of the year and warned that, even with the online boost, annual profits would miss forecasts.

“Online trading has been very strong in all countries over the last two weeks as people have been preparing to work from home and use essential technology to continue their lives during the coronavirus outbreak,” the retailer said.

“Early signs are that this strong trading has continued since stores closed and will help to compensate for lost store sales.”

It added that it has been taking “additional steps to protect colleagues as we work to satisfy high customer demand for essential technology products and services”.

The update comes after it last week announced 2900 job losses with the closure of 531 standalone Carphone Warehouse stores.

It said at the time that the move was not due to the coronavirus crisis and was aimed at helping to turn around its loss-making UK mobile business.

The firm’s most recent sales figures showed UK and Ireland mobile sales tumbled 15 per cent in the 11 weeks to March 21 and were down 24 per cent in the final three weeks.

with PA Wires

Click here to sign up to Retail Gazette’s free daily email newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here