Lower consumer demand contributing to lower sales at Currys, says GlobalData – Retail Times

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Following today’s release of Currys’ figures for 10 weeks to January 8, 2022, Kunaal Shah, Retail Analyst at GlobalData, a leading data and analytics firm, provides his take view: “Tough comparisons, lower consumer demand and supply chain disruption all contributed to a difficult trading spike for Currys. However, while performance on a year-over-year basis was down, its two-year performance saw group sales increase by 4%, and UK sales and power ROI increased by 3%.Nevertheless, the retailer has revised down its outlook for earnings, reducing its expected PBT to £155m, down £5m from its half-yearly update on December 15, 2021, while its share price fell 5.3% to opening today.

“The first half of 2022 is set to be a difficult time for the electrical specialist, in the face of the lockdown in 2021 which has seen consumers bring forward spending and reset the replacement cycle for many of their products, reducing the need for these purchases for at least a few years. GlobalData predicts the sector will fall 1.0% in 2022, with online down 6.6%, but stores – compared to much weaker comparisons – are expected to grow around 10.5%.

“Currys’ online sales performance slightly outpaced Very’s electrical division, where two-year online growth was 28.2%, underscoring the strength of the online proposition and product mix. by Curries. By utilizing the expertise and knowledge of its staff and constantly updating its assortment, Currys is well positioned to outperform its electric rivals in 2022. However, going forward, lower demand, certainly in the first half, will mean Currys’ online growth – if any. – will be minimal for the next six to 12 months.