Published on April 29th, 2020 | by The GC Team0
Online sales partially offset lost store sales for Dixons Carphone
Dixons Carphone reported UK&I Electricals sales up 10% for the 11 weeks to 21st March with a 23% rise in online growth, but sales for the succeeding five weeks declined by 16% due to the temporary closure of the retailer’s stores following to the coronavirus outbreak. Online growth rose 166% in the five-week period, recovering around two-thirds of the lost store sales.
In an update prior to entering the close period for its full year results for the 53 weeks to 2 May 2020, the company reported like-for-like sales in the Nordics up 5% and 24% respectively but sales in Greece for the 11 weeks were flat, followed by a 40% decline in the subsequent five week-period.
The UK&I and Greek stores which are closed would normally have been expected to contribute a further c.£400m of sales in this financial year, the retailer said.
April brought strong demand for home office equipment including computers and home networking as people worked and communicated remotely. Gaming and TV sales were also strong.
In kitchen products, refrigeration and food preparation including bread makers sold particularly well, with the latter part of the month seeing increased sales for personal care products and fitness trackers. In contrast, sales for other major domestic appliances fell as home moves stalled and the imaging market continued to decline.
Group Chief Executive Alex Baldock said the company has furloughed over 16,500 store, supply chain and support colleagues across territories, who are temporarily not working due to Covid-19. All UK&I furloughed colleagues will be paid at 80% of their salary, with the company making up any difference beyond the Government subsidy limits.
All Executive and Board members have taken a 20% pay reduction and other senior leaders have taken a 10% cut, effective from 5 April.
Baldock added that there will be no corporate bonus payment in UK&I this year.