Covid-19: Dixons Carphone reports major revenue drop amid gains online

Dixons Carphone has highlighted the importance of its online channel as it revealed pre-tax profits fell £173 million in the year ending 2 May 2020. The retailer said this was caused by a revenue decline of 20% in its UK and Ireland mobile business and the closure of stores as a result of the Covid-19 lockdown.

The group was able to increase UK and Ireland electricals sales by 1% in this period, with eCommerce playing a vital role especially when the Covid-19 pandemic struck. Online sales grew by 22% in electricals over the financial year in this area, and by a massive 166% in April. Data has shown demand for electricals items was high in the lockdown, with people needing equipment to work from home and for home entertainment.

Dixons Carphone also revealed it had been making strong progress in digitalising its business prior to the Covid-19 pandemic. It added it had gained “market share online as well as in stores” in the first ten months of the financial year.

Alex Baldock, group chief executive, Dixons Carphone, commented: “I’m struck by the vital role that technology has played in helping millions of families through this crisis, and I’m proud of how our business has stepped up, online-only outside the Nordics, to provide that help. Since the year end, all our electricals businesses have continued to grow sales. Where our stores have reopened we’ve performed well, while continuing to see strong online sales growth. That said, we expect a weakening of consumer spending later this year and are being cautious in our planning.

“We’ve learned a lot during this crisis and will emerge a better business from it. We’ve pioneered new ways of shopping, empowered our colleagues to move faster, and seen how technology is set to play an ever-bigger role in everyone’s lives. We’re also more convinced than ever that Dixons Carphone has the right strategy for our customers, our colleagues and our shareholders in the years ahead.”