Currys has warned that supplies of fans and air conditioning units are "tight" ahead of another UK heatwave expected next week, after a surge in sales during June's record heat left retailers scrambling to source new stock.
Sales spike during heatwave
Alex Baldock, chief executive of the electrical goods retailer, said cooling products had been "flying off the shelves" during the most recent heatwave weekend. Sales of fans were up nearly 3,000% compared with the previous week, while air conditioning sales increased by 330%.
Baldock said Currys, 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 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."
Currys annual results
The comments came as Currys announced its annual results for the year to 2 May, with sales rising 6% to £9.2bn and pre-tax profits increasing 23% 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, and grew its services business including repair and installation.
World Cup boost
Baldock said 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 90in TVs more than doubled. "We are certainly cheering on England and Norway," he said. "It’s good for sales."
Inflation and supply chain
Baldock noted that inflation was "inevitable", caused in part by a global shortage of silicon chips — "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 exact level of inflation reaching shelves was unclear, but Currys was "working hard to make the most of our influence as the number one [retailer] to protect the consumer from price rises".
Political and regulatory comments
Baldock welcomed Andy Burnham, the UK's next prime minister, "talking about the high street and retail at the centre of economic and social life in the country". He urged the government to unwind increases to employers' national insurance contributions introduced last year and to be careful with potential 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 increased 30% after changes to national insurance and the minimum wage announced in the October 2024 budget.
Baldock also 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 such as 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 departure
The results were Baldock's last annual figures before leaving Currys to become the boss of Boots, the health and beauty retailer, in the autumn.
