Currys boss urges Labour to ‘preserve listening’ on purple tape and tax burden as chain boosts revenue outlook

The boss of Currys has urged the Government to ‘keep listening’ to retailers on business rates, red tape and employment rights. 

Alex Baldock welcomed some of Labour’s u-turns on employments rights but said that it needed to keep listening to retailers.  

‘The government has shown it can listen but we urge it to keep listening. The tax burden is at an 80 year high. We remain concerned about some of the red tape and the employment rights bill,’ he said.

It came after Currys posted an upbeat trading update for the 10 weeks to 10 January.  

The retailer said its full-year profit looked set to beat market expectations after ‘very strong’ trading over the peak Christmas and new year period. 

Sales rose 6 per cent, driven by a 12 per cent increase in sales in the Nordics, while the UK and Ireland saw a 3 per cent increase, which was buoyed by demand for mobiles, computers and appliances.

On the up: In the 10 weeks to 10 January, Currys saw sales rise by 6%

Currys flagged its performance in the Nordics as ‘standout’, with market shares gains in a ‘buoyant’ market and sales growth across all categories. The Nordics accounts for around 40 per cent of group revenue.

Currys now expects its annual adjusted pre-tax profit to come in at between £180million and £190million, up 11 per cent to 17 per cent on the previous year.

Currys’ performance in the UK compared favourably with other retailers, which have generally shown that while shoppers over Christmas treated themselves on the groceries-front, they were wary on spending on gifts and non-food items.

In charge: Alex Baldock is the chief executive of Currys 

Baldock said: ‘UK consumer confidence has been bumpy. 

‘Consumers have been hoarding cash, saving more than borrowing which is unusual. Our technology market has been down 2 per cent over the peak trading, so we’ve had to run up a down escalator.

‘We’re looking ahead with confidence. Every part of this business is heading in the right direction.’

He added: ‘The government wants to grow the economy and engine-room sectors like retail, and we want to help and employ more people. We ask that we’re helped, not hindered in doing so.’ 

Shares in Currys jumped 5.82 per cent, having gained 45 per cent over the past year. 

Russell Pointon, a strategist at The Edison Group, said: ‘Looking ahead, Currys enters 2026 with clear momentum. Management expects to finish the year with net cash above £100million and is returning surplus capital through a £50million share buyback alongside dividends. 

‘With a medium-term focus on achieving maintaining at least 3 per cent adjusted EBIT margins in both regions, disciplined capital expenditure and growing higher margin recurring revenues, the group appears well positioned to deliver further profit and cash flow growth.’

Richard Hunter, head of markets at Interactive Investor, said: ‘The price may have drifted over the last few months as the retailer has been caught up in some of the negative updates coming from elsewhere and lower consumer confidence, but this update has led to the shares flying out of the traps.’

He added: ‘Even the strength of this performance has not diminished appetite for the stock, with the market consensus of the shares as a strong buy holding firm.’