Currys Warns of Muted Christmas Amid Tax Pressures

The chief executive of Currys, Alex Baldock, has issued a stark warning regarding the UK's consumer outlook ahead of the critical Christmas trading season. He expressed significant concern that recent tax increases have further burdened consumers, leading to expectations of muted spending and confidence. Baldock highlighted that the company is also contending with escalating operational costs, including higher wages and increased National Insurance contributions, which have suppressed potential profit growth.

Baldock indicated that these tax-related pressures have adversely affected the business, stating that profits would have been twice as high in the UK without them. Furthermore, he cautioned that aspects of upcoming employment legislation could render certain retail positions unviable, potentially leading to widespread job reductions. Analysis suggests a significant decrease in retail employment over the next three years, impacting major employers.

Despite these macroeconomic headwinds, Currys announced robust financial results for the six months ending November 1, with sales climbing to £4.2 billion and profits more than doubling to £22 million. The company's shares saw a notable increase following the announcement. Looking ahead to the Christmas period, Baldock anticipates strong demand for AI technology and electronic beauty products.