Currys says rising costs are being passed on to shoppers and warns of impact on sales | Business news

Currys has said rising costs are being passed on to shoppers and warned of the impact of inflation on sales.

The chain said the “consumer spending outlook is uncertain” as it revealed pre-tax profits in the year to April nearly quadrupled to £126 million, compared to the previous year.

Currys said: “For most products, we pay in local currency when the goods arrive in our markets, the price increases we see that this will also be felt by all our competitors.

“These costs are passed on to consumers, but we are proactively trying to reduce this by offering comparable products with different specifications at alternative prices.”

Currys said inflation is “very likely to create headwinds for consumer spending and affect sales, particularly in some of our more discretionary categories”.

Read more on Sky News:
See which prices have risen – and which surprising luxuries have fallen
Motorists hit by record monthly increase in petrol prices

“Here we are doubling our customer offering and will do everything we can to help customers,” the retailer said.

Although revenues fell slightly, the company told investors it received £69 million in savings over the course of the year through cost cutting.

Chief executive Alex Baldock highlighted Currys’ efforts to help customers.

Listen and Subscribe to The Ian King Business Podcast here

“Our scale as an international market leader, our control over costs and our strong supplier relationships will enable us to manage inflation headwinds and keep great technology within everyone’s reach, even now,” he said.

“That’s what Currys exists for, and it never mattered again.”

He announced a “price lock for 2021” that would freeze prices on dozens of products and said Currys “did more to help customers spread costs” with an arrangement to defer payments on purchases over £99.

Leave a Comment