Published on April 28th, 2021 | by The GC Team0
Dixons Carphone announces closure of Travel stores
Dixons Carphone has decided to close its Travel stores following the UK government’s decision to do away with tax-free shopping.
Dixons Travel historically made an annual profit contribution of over £20m and has 35 stores with around 400 staff.
In a full-year trading statement, released today, the retailer said it does not expect passenger numbers to recover sufficiently to compensate for the removal of airside tax-free shopping by the UK Government from 1 January. It was a “difficult decision” to close the business.
The company reported a “strong financial position” for the 51 weeks to 24 April and said it has reimbursed all government support for the £73m of furlough paid to UK&I colleagues during the year.
Group Electricals rose 14% with trading remaining strong since January. Sales growth continued the positive performance seen over the Peak trading period, despite the extended closure of most stores in UK&I and increased restrictions on trading in the Nordics.
Like-for-like revenue growth in UK & Ireland Electricals was up 13%.
Strong growth in online sales also continued in all markets with Group Electricals more than doubling to over £4.5bn for the year.
After the cost of repaying government support, the retailer expects full-year adjusted profit before tax to be broadly in line with the current consensus of £151m.
Dixons Carphone is scheduled to publish its Full Year results on Wednesday 30 June 2021.