Electrical goods retailer Currys yesterday delivered a cost of living shock as it revealed a £450million loss and said it was being squeezed by ‘depressed demand, high inflation and unforgiving competition’.
Boss Alex Baldock said he was ‘wary of optimism about consumer spending power’ despite bullish updates from other high street brands.
Shares fell 9.7 per cent, or 5.17p, to 48.28p, as it axed its dividend.
Slump: Currys shares fell 9.7%, or 5.17p as it axed its dividend and revealed it had fallen to a £450m loss
Baldock said that sales of smart speakers were among the products that had suffered – telling the BBC they had ‘fallen off a cliff’ – as consumers are ‘being careful with their money’.
He added: ‘People aren’t as interested in Amazon Alexa as they used to be.’
Currys fell into the red as a result of a big accounting writedown dating back to the merger beyween Dixons and Carphone Warehouse that created the company in 2014.
However profits in the UK and Ireland climbed 45 per cent to £170million as savings offset wilting sales.
The results for the year to April 29 came as consumers struggle with inflation and soaring mortgages.
Sales at the firm, which sells products ranging from laptops to washing machines, dropped by 6 per cent in total and 8 per cent in the UK and Ireland.
Bosses said households were delaying pricey purchases of electronic devices but were forking out for more energy-efficient appliances such as air fryers to mitigate painful energy bills.
Some retail stalwarts have seen buoyant sales this year and rival white goods seller AO World this week said that it had weathered the storm as it sold products that consumers ‘need’ rather than ‘want’, such as washing machines.
But Currys boss Baldock said: ‘Looking ahead, we’re wary of optimism about consumer spending power.’
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