Currys figures suggest bricks-and-mortar retail is no laughing matter

In today’s half-year report covering the period to October 26, Currys chief executive Alex Baldock noted that the company has made “big improvements” to both its online and store offering in the UK. 

The online share of total sales rose by two percentage points to 45%, but there was only a minimal decrease in the retail estate which declined by two units to 298 stores across the UK and Ireland. Total floor space was maintained at roughly 5.4 million square feet.

More than 80 of those outlets have been overhauled with further to come, giving additional space to more profitable products and making way for continued expansion into new categories such as the strongly-performing mobile business. This has also supported growth in the order and collect business, which now accounts for 27% of online revenue.

“All this showed in growing sales, market share, gross margins and profits,” Mr Baldock said.

Revenues for the whole of the group, which includes a further 413 Currys stores in the Nordic region, increased by 1% during the first half to £3.92 billion. The pre-tax loss fell to £10 million from £44m a year earlier.

While that might not sound particularly electrifying, analysts said the company is making strong progress that has been partially masked by a particularly weak consumer market in the Nordics.

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“The retailer has taken a range of self-help measures, successfully fought off competition, and enhanced buying margins – all of this is feeding through to an improving bottom line,” said John Moore, senior investment manager at RBC Brewin Dolphin. “It is also well placed in growing themes, such as AI-powered laptops, which should provide a tailwind going into 2025.”

Mr Baldock was equally upbeat even though the company is facing a £32m hit from minimum wage and national insurance increases announced in October’s Autumn Budget. This will make “some price rises inevitable”.

All told though, the company is looking justified in having turned down a 62p per share takeover offer earlier this year from US private equity group Elliott, the owner of bookseller Waterstones. Its shares were up more than 14% in late afternoon trading at 90.4p.