27 June 2024
Robyn Duffy, senior analyst for consumer markets at RSM UK comments on today’s results from Currys: ‘Two major factors have contributed to the lull in year-on-year sales at Currys. Firstly, the cost-of-living crisis has led to more price-sensitive consumers, causing shoppers to either trade down or delay larger purchases, such as electrical goods.
‘Secondly, the weak housing market, driven by high interest rates, has negatively impacted homeware and appliance sales. With fewer new homeowners purchasing white goods and electricals, a struggling housing market typically spells trouble for businesses like Currys.
‘On a positive note, the business reports improved margins benefitting from increased customer adoption of solutions and services, as well as effective cost management.
‘As the macroeconomic climate improves and interest rates stabilise across key territories, the outlook for Currys appears promising. Topline growth in the coming financial year seems achievable, but the business must remain vigilant, as key competitors have reported strong results this week. Unlike its online-only rivals, Currys faces the critical challenge of offering value to consumers still grappling with the cost-of-living increases while maintaining its store portfolio. All eyes will be on Currys ability to gain market share in the next financial year.’