Currys has announced it is entering a period of “employment downturn” as it introduces more automation and changes to employers' national insurance, but the consumer environment is set to change over Christmas, with shoppers picking up coffee machines. During the period, he said, “I felt better.'' Laptops with AI.
The electronics retailer announced it would pay shareholders a dividend for the first time in two years after underlying sales rose 2% in the UK and Ireland and 1% in its Nordic stores. Since 2021, both arms have not been able to grow at the same time.
The company comes as Currys chief executive Alex Baldock said the company is doing well in a tough technology market and expects to achieve profits of up to £155m for the year to the end of the year. 's share price soared more than 9% on Wednesday to almost 90p. April – £5m to £15m more than previously forecast.
“Our market has been down a little bit since the beginning of the year, but it has recovered a little bit from the peak. [Christmas period]” he said. “There are several factors that are dampening sentiment, including inflation, interest rates, and general confidence, but as inflation peaks and interest rates fall, there are some signs that consumer confidence and spending have moved beyond the trough. There is.”
He said shoppers were prepared to pay a premium for AI-powered laptops and AI-powered phones, including Google's Chromebook Plus and Microsoft's Copilot, and were also buying coffee machines, drones and beauty technology for Christmas. Ta. In contrast, television sales declined.
Mr Baldock said Currys faced additional costs of £30m due to changes to the National Insurance system introduced in October's budget, but the company had already established ways to offset half of that. .
He said “some price increases are inevitable,” but Currys was not looking to lead the way, hoping to find ways to “mitigate as much as possible.” He said changes to National Insurance would “depress employment and encourage automation and offshoring”.
The company will introduce further automation this year, including installing electronic price labels in 100 stores to allow end-of-shelf information to be changed with the push of a button and adding more warehouse equipment to improve efficiency. It's planned. The company already employs 1,000 people in India and may seek to expand there.
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Mr Baldock said Currys had no plans to cut jobs, but there would be a period of “low employment” as the company sought to limit the impact of rising labor costs. He urged the government to phase in changes to National Insurance beyond the current April deadline, with new measures including guaranteed working hours for workers and changes to operating rates leading to higher costs for big retailers. He said employment rules should be carefully considered.
John Moore, senior investment manager at RBC Brewin Dolphin, said: “It's been a tough seven days for UK retailers, but Currys has managed to stay on top of this trend, supported by a general increase in AI products and technology spending. It's the opposite,” he said. This company is a typical slow-burn story of self-help, with sales increasing, market share expanding, and profits trending in the right direction. ”
