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Pandemic causes £324 million store sales slump for Dixons Carphone

Mobile News
December 16, 2020

However online sales surge 145 per cent

The crash in footfall and enforced store closures due to the pandemic reduced Dixons Carphone store sales by at least £320m in the six months to the end of October.

Closure of standalone Carphone Warehouse stores resulted in a £36 million loss for the sale period.

It was not all bad news. Online sales increased 145 per cent yielding almost £800m more sales year on year and offsetting sales loss from enforced store closures and in the crash in business for Dixons Travel.

The company used the furlough scheme to preserve jobs in the first lockdown and didn’t use the scheme the second lockdown

Group chief executive Alex Baldock said directors had taken salary cuts and waived bonuses. He also had bad news for shareholders as he confirmed the dividend was suspended.

It was not all bad news. Online sales increased 145 per cent yielding almost £800m more sales year on year and offsetting sales loss from enforced store closures and in the crash in business for Dixons Travel.

Baldock said: “The outlook remains uncertain, and we’re still nowhere near our full potential. Much hard work lies ahead. But this year has shown this business’s qualities, especially the grit and skill of our colleagues. Our strategy has been stress-tested as never before, we’ve had one arm tied behind our back versus our competitors, and we’ve responded with stronger performance and an accelerating transformation.

“I’m more confident than ever that we’re on the right path to creating a world-class business for colleagues, customers, shareholders and society.”

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