Online sales at Dixons Carphone triple during lockdown but the retailer suffers at its travel hub stores as people stay at home
- The group saw a surge in sales online after lockdown started in late March
- But, its mobile arm and travel hub stores are still struggling, update today shows
- In August, company announced plans to cut 800 store management jobs
Dixons Carphone saw sales of electrical items purchased online triple at the peak of lockdown, its latest update reveals.
Even after the company reopened its stores, online sales have remained over twice as high than at the same point a year ago.
But, with many people still working from home and travelling less, the group’s travel hub stores, many of which remain closed, have seen their sales slashed 90 per cent on a year ago.
In August, the Currys PC World owner announced plans to cut 800 store management jobs in a bid to create a ‘flatter management structure’ as it adapts to surging online sales.
Booming online sales: Dixons Carphone saw sales of electrical items purchased online triple at the peak of lockdown
The business said that despite what looks like strong trading at the moment, it is ‘uncertain’ over its outlook for the year.
Chief executive Alex Baldock said: ‘Online has continued to power ahead: in the UK & Ireland alone we grew online sales by more than £500million in four months, growth that stayed strong even as stores reopened.’
The company reported a 12 per cent rise in electricals sales in the UK and Ireland in the 17 weeks to the end of August.
In the Nordics, online sales rose by 49 per cent, while they increased by 115 per cent in Greece. Stores were open throughout the period in both locations.
In total, international like-for-like revenue grew 16 per cent over the period.
But rises in one area were largely offset by falls in others, as shop sales plummeted during lockdown.
Dixons Carphone’s mobile division suffered a 56 per cent drop in revenue over the period.
The group has been struggling with its loss-making mobile arm amid dwindling demand for new phones.
Earlier this year Dixons Carphone announced plans to close all its standalone Carphone Warehouse stores in face of poor demand.’
The company said it was in the ‘early stages’ of considering a stock market listing for its Nordics arm.
Dixons Carphone said: ‘This would shine a light on the value of the Nordics business whilst retaining it as part of the group.’
FTSE 250-listed Dixons Carphone saw its share price jump sharply this morning. At present, the share price is up 3.97 per cent or 3.25p to 85.15p.
Mixed fortunes: Online sales at Dixons Carphone have increased but travel hub store sales are down 90% on last year