Decline in consumer demand contributes to falling sales at Currys, says GlobalData

Following today’s release of Currys’ figures for 10 weeks to 8 January 2022 Kunaal Shah, retail analyst at GlobalData, a leading data and analytics company, offers his view: “Tough comparatives, a drop in consumer demand, and supply chain disruption have all contributed to difficult peak trading for Currys. However, while performance on a one-year basis was down, its two-year performance saw group sales grow 4%, and UK and ROI Electrical sales increased 3%. Nevertheless, the retailer has downgraded its profit outlook, reducing its expected PBT to £155m, a drop of £5m from its half-year update on 15 December 2021, while its share price dropped 5.3% at opening today.

“The first half of 2022 is expected to be a difficult period for the electricals specialist, up against lockdown in 2021 which saw consumers bring spend forward and reset the replacement cycle of many of their products, reducing the need for these purchases for at least a couple of years. GlobalData forecasts the sector will fall 1.0% in 2022, with online seeing a 6.6% decline, but stores – up against much softer comparatives – should see growth of c10.5%.  

“Currys’ online sales performance has marginally outperformed Very’s electricals division, where two-year online growth was 28.2%, highlighting the strength of Currys’ online proposition and product range. Through utilising its staff expertise and knowledge, and constantly refreshing its assortment, Currys is in a strong position to outperform its electricals rivals in 2022. Looking ahead however, the drop in demand, certainly in H1, will mean Currys’ online growth – if any – will be minimal for the next six to 12 months.”