Dixons Carphone says strong online demand partially offsets drop in store sales
Electricals retailer says it has extended its debt facilities, putting it in a robust position financially
Dixons, which trades as Carphone Warehouse and Currys PC World, said online sales were making up for about two-thirds of store sales lost due to closure. Photograph: Simon Dawson/Bloomberg
Electricals retailer Dixons Carphone said strong online demand was partially offsetting declines from stores being shut in the coronavirus lockdown, but it scrapped its dividend due to the uncertainty ahead.
The UK-based group, which trades as Carphone Warehouse and Currys PC World and has stores in Ireland, Scandinavia and Greece, said on Wednesday that it was focused on strengthening its liquidity, and had extended its debt facilities, putting the company in a robust position financially.
Dixons said that online sales, for products connected to the lockdown such as computers for home working and fridges and breadmakers for increased food preparation, were making up for about two-thirds of store sales lost due to closure.
It said that store s in Britain, Ireland and Greece that are closed would normally have been expected to contribute a further 400 million pounds of sales in this financial year. In the five weeks to 25 April, broadly the period of Britain’s lockdown, underlying sales in UK and Ireland electricals business fell by 16 per cent, while online sales showed growth of 166 per cent.
The company said its Nordic stores had remained open during this period with social distancing measures, giving it a blueprint for how to operate its UK stores once lockdown measures are eased. – Reuters