Currys boss Alex Baldock has warned price increases are set to continue as the electricals retailer looks to safeguard its profit margin.
The chief executive also revealed it had started discussions about a possible tie-up with shareholder Frasers, which widened its stake in the business to 10.4% last week.
“This is a potentially interesting partnership,” he said, “There are a number of avenues that we’re exploring.”
The retailer revealed on Thursday its profits had plummeted 38% to £119m in the year to 29 April 2023, dragged down by an 82% drop in earnings from its Nordics arm after heavy discounting at rivals led to its “long track record of success brought to an abrupt halt”.
To help offset the weak performance of its international business, Currys has spent the last year focusing on strengthening its UK and Ireland margins.
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The measures, which included “passing more of the cost increases on to consumers”, means the retailer is on track to reach its £300m cost out target.
Currys introduced delivery and installation fees for major appliances, as well as charging for new recycling services – which Baldock said is set to continue.
“We’ve increased our charges in some areas, and the customer is happy to pay it because they get a better service.
“It’s a win win and we intend to keep going with that,” he said.
Like-for-like UK and Ireland sales slipped 7% to £5.1bn “driven by a fall in consumer spending due to persistent inflation”.
Keen to maintain its price promise, Baldock said Currys had been able to “shield the customers from much of inflationary cost increases, but we haven’t been able to hold back the tide completely”.
“Some of those price rises have been passed through to customers.”
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