29 Apr 2020
Posted in Retail
Dixons Carphone’s online sales unable to counteract the loss of store sales as a result of COVID-19
Following today’s release of Dixons Carphone’s figures for the five weeks ending 25 April 2020.
Zoe Mills, Retail Analyst at GlobalData, a leading data and analytics company, comments:
‘‘Dixons Carphone has had a difficult time of late, particularly within its mobile business, and while the impact of the COVID-19 pandemic has resulted in an uplift in sales in Q4 2019/20, as consumers invested in goods such as fridge freezers and televisions, this uplift appears to be ending. For the five weeks to 25 April, Dixons Carphone’s like-for-like UK & Ireland online electrical sales were up 166%, enabling it to weather store closures to some degree, given the high online penetration of this market. However, this uplift in online sales has not been able to outweigh the closure of its stores with overall electrical sales down 16% for the same period and it enters its next financial year in a difficult position. Dixons Carphone’s share price rose 16% in early morning trading with these better than expected results, driven by its performance in the Nordics where it has not faced the same store closures as in the UK or Greece. Its share price is still only at around half the level it began the year though.
Dixons Carphone also announced how it was adapting to the changing demand for stores during the current lockdown in the UK, including launching its ShopLive services that will allow its customers to connect with store staff from home. This will be particularly valuable in categories where more guidance is needed before making a purchase such as with televisions or laptops.
It will be a long process back to normal trading and Dixons Carphone’s mobile business remains a drain on its overall proposition. The electricals retailer announced it was shutting 531 Carphone Warehouse stores, in March, just ahead of the lockdown measures and Baldock will need to ensure he doesn’t lose focus on improving the profitability of the mobile business during the pandemic to ensure its longevity in the future.”