‘We’re winning online’ says Dixons boss after three quarters of sales go digital

Around three in four pounds of revenue made by Dixons Carphone over the Christmas period in the UK and Ireland came from customers placing orders online, as shops remain closed.

The company revealed on Wednesday that online electronics sales soared 121% in the UK and Ireland over the 10 weeks to January 9, adding that it had increased its market share by six percentage points.

“We’re winning online, where we’re the biggest and fastest-growing specialist technology retailer in all our markets,” said chief executive Alex Baldock.

In the Nordics online sales also soared, up 97% compared to the same period last year, while in Greece they rocketed by 366%.

The news comes as the business faces an uncertain few months. Lockdowns in the UK, Ireland and Denmark currently mean that large parts of its operations are mothballed with no end in sight.

Regardless, Dixons reassured shareholders that it expects to report full-year profits in line with market expectations, and kept to its medium-term guidance.

“The outlook remains uncertain, and we’re still far from our full potential. But this strong performance makes us more confident than ever that we’re on the right path to create a world class business for colleagues, customers, shareholders and society,” said Mr Baldock.

Overall, electrical like-for-like revenue grew 11%, boosted especially by TVs, smart devices, food preparation products, the health and beauty category and “all areas” of computing and gaming.

However, in the UK and Ireland, the company’s decision to close its standalone Carphone Warehouse stores is taking a toll, sending mobile revenue down by 40%, the company said.

In the UK and Ireland, online sales accounted for 75% of revenue in the period, while making up 30% in the Nordics and 48% in Greece.

As a percentage of overall sales, online has almost doubled internationally to 53%.

Mr Baldock added: “And even where stores have been closed, our work to bring the best of digital and physical shopping to every customer has borne fruit in such innovations as our one-hour drive-through Order & Collect and ShopLive.

“Our flexible infrastructure and accelerating transformation mean we’ve been able to react ever-faster to changing trading restrictions, while building more lasting and valuable customer relationships.”