Currys chief executive Alex Baldock has warned that supplies of air conditioning units and fans are "tight" ahead of another UK heatwave expected next week, following a surge in sales during June's record heat in England. Sales of fans jumped nearly 3,000% over the most recent heatwave weekend compared with the previous week, while air conditioner sales rose by 330%, he said.
Stock levels under pressure
Baldock said the electrical goods retailer, which operates 691 stores in the UK and Nordic region, was "working incredibly hard to make sure we have got a healthy level of stock" but admitted supplies were "pretty tight". He added: "We are benefiting from being number one in the market and if anyone is going to have it we are going to have it."
Strong financial results
The comments came as Currys announced its annual results for the year to 2 May, showing a 6% rise in sales to £9.2bn and a 23% increase in pre-tax profits to £153m. Sales in established UK stores grew 3%, outperforming a declining wider market, as the company expanded into new categories such as coffee machines and AI-driven laptops, grew its repair and installation services, and increased sales to small businesses.
World Cup boosts sales
Baldock noted that trading since May had remained strong, partly driven by the football World Cup, which boosted sales of large TVs, barbecues, beer pumps, and hot tubs. Sales of 90-inch TVs more than doubled. "We are certainly cheering on England and Norway," he said. "It's good for sales."
Inflation and supply chain challenges
Baldock described inflation as "inevitable", citing a global shortage of silicon chips as "definitely a real thing" and demand from AI datacentres. However, he said Currys had secured its supply of computers and mobile phones until at least September. The extent of inflation reaching shelves remains unclear, but Currys is "working hard to make the most of our influence as the number one [retailer] to protect the consumer from price rises".
Political and regulatory calls
Baldock expressed delight that Andy Burnham, the UK's putative next prime minister, was "talking about the high street and retail at the centre of economic and social life in the country". He urged the government to reverse increases to employers' national insurance contributions introduced last year and to be cautious about new restrictions on employment contracts under the Employment Rights Act. He said Burnham needed to make it "less risky, less difficult and less expensive" to hire people, noting that the cost of employing a part-time worker at Currys rose 30% after changes to national insurance and the minimum wage announced in the October 2024 budget.
Level playing field with online sellers
Baldock called for a "level playing field" with online sellers on business rates and faster removal of tax breaks on low-value imported items, which have benefited cut-price overseas sellers like Shein and Temu. Last month, the Treasury announced it was bringing forward the removal of the de minimis customs duty relief by six months, to October 2028.
CEO transition
These results were Baldock's last annual figures before leaving Currys to become the boss of Boots, the health and beauty retailer, in the autumn.
