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Currys CEO warns of tight fan and AC supplies ahead of heatwave

Created at 2 Jul · 11:45 AM1 source↑ Market-relevant
IN SHORT

Currys CEO Alex Baldock stated that supplies of air conditioning units and fans are "tight" ahead of an anticipated UK heatwave, following a surge in sales during June's record temperatures. The company reported a 6% rise in sales to £9.2bn for the year.

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Key Numbers

3,000%fan sales increase over recent heatwave weekend
330%air conditioning sales increase over recent heatwave weekend
6%Currys' annual sales growth
£9.2bnCurrys' annual sales
23%Currys' pre-tax profit increase
£153mCurrys' pre-tax profits
3%sales growth in established UK stores
691Currys stores in UK and Nordic region
90inTVs sales have more than doubled
30%increase in cost of employing a part-time worker at Currys
October 2028new date for removal of de minimis customs duty relief

Who's Involved

Alex Baldock
CEO of Currys, commenting on sales and supply chain issues
Currys
Electrical goods retailer reporting annual results
Andy Burnham
UK's putative next prime minister, mentioned regarding high street support

↳ Why This Matters

The warning highlights potential consumer frustration and lost sales opportunities for retailers if supply chains cannot meet demand during extreme weather events. It also underscores the impact of global supply chain issues and economic factors on consumer goods availability and pricing.

Key facts

  • Currys CEO Alex Baldock warned of tight supplies for fans and air conditioning units ahead of an expected UK heatwave.
  • Sales of fans surged nearly 3,000% and air conditioning sales increased 330% during the recent heatwave.
  • Currys reported a 6% increase in annual sales to £9.2bn and a 23% rise in pre-tax profits to £153m.
  • The company is expanding into new product categories and services.
  • Baldock called for government action to reduce business costs and create a fairer competitive environment for retailers.

Currys CEO Alex Baldock has warned that supplies of essential cooling appliances like fans and air conditioning units are "tight" as the UK braces for another heatwave. He noted that sales of these items had "flown off the shelves" during June's record temperatures, with fan sales up nearly 3,000% and air conditioning sales up 330% over a recent heatwave weekend.

Baldock made these remarks while announcing Currys' annual results, which showed a 6% increase in sales to £9.2bn and a 23% rise in pre-tax profits to £153m for the year ending May 2. Sales in established UK stores grew by 3%, outperforming the wider market, as the company diversified into new product areas like coffee machines and AI-driven laptops, and expanded its services.

Trading since May has continued to be strong, partly attributed to increased sales of large TVs and other items related to the football World Cup. Baldock also addressed inflation concerns, citing global silicon chip shortages and demand from AI data centers, but confirmed Currys had secured its supply of computers and mobile phones until at least September. He expressed a desire to shield consumers from price increases.

Furthermore, Baldock urged the government to reduce employers' national insurance contributions and to ensure a level playing field for retailers concerning business rates and tax breaks on imported goods. He is set to depart Currys in the autumn to become the CEO of Boots.

Frequently asked questions

Supplies of air conditioning units and fans are reported to be tight at Currys.

For the year to May 2, Currys reported sales of £9.2bn, up 6%, and pre-tax profits of £153m, up 23%.

Alex Baldock cited global silicon chip shortages and demand from AI data centers as contributors to inflation.

He is urging the government to reduce employers' national insurance contributions and create a more equitable business environment for retailers.

What Happens Next

01Currys will continue efforts to secure stock levels for cooling appliances.
02Alex Baldock will transition to his new role as CEO of Boots in the autumn.

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Cadence

How It Developed

Currys CEO Alex Baldock reported tight supplies of cooling appliances.
Sales of fans increased nearly 3,000% and air conditioning sales rose 330% during a recent heatwave weekend.
Currys reported a 6% increase in sales to £9.2bn for the year ending May 2.
Pre-tax profits rose 23% to £153m.
Sales in established UK stores increased by 3%.
The company expanded into new markets and services.
Trading since May has remained strong, boosted by the football World Cup.
Baldock commented on inflation risks due to silicon chip shortages and AI data center demand.

Sources

T1
Fans in short supply as next UK heatwave approaches, says CurrysThe Guardian

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