The price of TVs, stereos and other electronic goods will soar this year, the boss of Currys has warned.
Alex Baldock, the retailer’s chief executive since 2018, said it is ‘inevitable’ shoppers will be hit by price hikes because of soaring inflation.
Baldock refused to say exactly by how much prices will rise but top retail analysts said it could be as much as 8 per cent.
Price hike: Alex Baldock said it is ‘inevitable’ shoppers will be hit by price hikes because of soaring inflation
Currys has struggled with supply chain disruption causing shortages and increased shipping costs. Baldock said Currys will be able to ‘swallow’ some of the costs and promised it would still offer cheaper products than rivals. But the 51-year-old said that across the market prices will increase.
He said: ‘One of the things we do expect across the market in 2022 are price rises. We think that’s inevitable, we will stand by our price promise that nobody will get cheaper than they will with Currys.’
Families across the country face a cost of living crisis driven by soaring energy bills, rampant inflation and looming tax rises.
The Bank of England expects inflation to hit 6 per cent by spring, while analysts have warned that the energy bill price cap could jump by more than £700 in April.
National Insurance rates will also rise in April, costing taxpayers an extra £12billion.
Baldock said fears over squeezed household budgets, as well as uncertainty around Covid, had already seen some customers reining in spending.
Currys, which has 832 stores based mainly in the UK, reported a 5 per cent sales drop in its key Christmas trading period. As a result of the drop in sales, Currys lowered its profit guidance to £155m, from £160m previously.
The business stunned investors last month by warning that sales were slowing in the run-up to Christmas.
At the time Baldock blasted the Government’s reaction to Omicron and called for retailers to be allowed to trade freely.
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