Investment in online drives Dixons Carphone’s success over the festive period, says GlobalData

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Following today’s release of Dixons Carphone figures for the 10 weeks ending 9 January 2021; Zoe Mills, senior retail analyst at GlobalData, a leading data and analytics company, comments: “Dixons Carphone has produced a stellar set of results over the peak trading period to 9 January 2021, boasting a significantly better performance than its comparative period last year (+8% vs. +2% for UK & ROI electrical like-for-like sales) driven by a strong online proposition. UK & ROI online penetration at the electricals specialist rose from 37% for the 10 weeks to 11 January 2020 to 75% in this year’s comparative period. Initiatives such as ShopLive have been integral to its success ensuring it remains competitive against the likes of online pureplays Amazon and AO World. And while not a directly comparable period, Dixons Carphone will be pleased to have outperformed AO World which reported 67.2% UK revenue growth for the three months ending 31 December 2020, extending its online market share lead on AO World.

“Dixons Carphone’s mobile proposition remains a thorn in its side. With its plans to launch a new mobile offer in 2020 impeded by the pandemic, the electricals specialist must push ahead with this plan given the dismal mobile results it continues to report year in, year out. Yet, even this revamp may not be enough, with longer consumer replacement cycles and the move to cheaper sim-only contracts expected to continue. With more consumers also purchasing handsets outright, Dixons Carphone must better utilise its Currys PC World fascia to entice shoppers to buy from its stores rather than direct from brands such as Apple.

“With 2020 proving to be a success for Dixons Carphone, and indeed the UK electricals sector as a whole with the market having grown 3.9% in 2020, tougher times are coming in 2021. With spending brought forward as consumers invested in electricals to make time spent in numerous lockdowns more enjoyable, demand will wane as fewer feel the need to spend again so soon. Managing this expected dip in demand will be key and the focus must be on encouraging consumers to trade up to more premium models, utilising its robust credit offer to entice this uplift in spend.”