Stellar UK performance drives Dixons Carphone growth over the festive period

Despite coming up against strong comparatives, Dixons Carphone produced a great set of results over the festive period, (10 weeks to 07 January) with its performance in the UK & Ireland of 6.0% like-for-like sales its greatest achievement given the level of economic uncertainty in the market.


Despite coming up against strong comparatives, Dixons Carphone produced a great set of results over the festive period, (10 weeks to 07 January) with its performance in the UK & Ireland of 6.0% like-for-like sales its greatest achievement given the level of economic uncertainty in the market.

The emphasis on electricals during the promotional events of Black Friday and Boxing Day sales meant that Dixons Carphone was up against fierce competition. However, the retailer reported record sales over the Black Friday week, with sales stretching across the week more than they had in previous years, helping to alleviate pressure on the retailer's delivery system. This also suggests that consumers were more confident that Dixons Carphone's deals were the most competitive during the entire promotional period and that shoppers needn't hold out until Black Friday itself for further reductions.

Online performed exceptionally well over the festive period for Dixons Carphone, witnessing 'significant growth' in categories such as white goods, which are much harder to sell online as shoppers desire input from knowledgeable staff for these purchases.

"I am pleased to be reporting another good Christmas period of growth - our fifth consecutive year. At a time of significant political uncertainty around the World, it was heartening to see that customers were choosing to enjoy the benefits that new technologies could bring to their lives during this holiday season." - Seb James, Group Chief Executive

On top of this the retailer is set to produce a ‘meaningful uplift’ in full year profits, which underlines how it has been in control of its promotions rather than having to follow the market. Being the only major specialist left on the high street is a help, and demonstrates how consumers’ appetite for new technology continues unabated.  

If Dixons Carphone's success over the festive period is any indication of future performance, the electricals specialist looks set for a promising full-year result, outperforming the electricals sector as a whole and gaining share from the likes of the grocers and Argos. Yet 2017 is set to be a tough year for all retailers in the electricals sector, with manufacturing cost increases already trickling through to retail prices. Dixons Carphone must highlight its price promise to ensure that it remains forefront of consumers' minds for technology.