Currys grows sales in Greece despite wildfires hit

Currys managed to grow its sales in Greece even as they shrank everywhere else despite a recent spate of wildfires in the country, the electronics retailer has revealed.

Sales in Greece grew by 3% on a like-for-like basis in the 17 weeks – around four months – to the end of August, the company said on Thursday.

It was the only place where the group managed to grow sales, with the UK and Ireland dropping 2% and the Nordics down 8%.

Across the business revenue fell by 4%, but Currys did not change its outlook for the year.

However, Currys said its performance in the UK started to improve in July and August when compared with May and June.

It said sales of domestic appliances and mobile phones have been “robust”, but other areas, especially computing, have been weaker.

In the Nordics, where Currys has been struggling for a while, revenue improved slightly, but the “trading environment remains challenging”.

The company said it managed to save money, including by reducing its staff numbers in the region.

It said that in Greece “trading continues to be robust despite short-term impact from wildfires on customer footfall during August”.

Chief executive Alex Baldock said: “Our priorities this year are simple: to keep the UK&I’s (UK and Ireland’s) encouraging momentum going, and to get the Nordics back on track.

“We’re making good progress on both, in what continues to be a challenging economic environment.

“We remain confident that we’re building a stronger business that’s resilient today and fit to prosper in the longer term.”

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: “Electrical goods specialist Currys has confirmed guidance for the full year remains unchanged.

“While that’s not exactly bad news, it’s also not overly encouraging.

“Margins remain a challenge, partly because of the very tough price environment.

“At the same time, the higher interest rate and inflation environment means customers are stalling on buying new computer goods.

“Domestic appliances are faring better, which is a good sign in terms of consumer resilience, but the weakness in other areas suggests customers are starting to be more selective. This could heap further pressure on margins as we barrel towards the festive trading season.

“While Currys is pulling all the levers at its disposal to get profitability off the ground, it’s relying heavily on cost savings.

“This is by no means a bad approach, but cost savings can’t go on forever. The market is hunting for clues that organic demand and volumes are capable of propping up the bottom line.”