Currys remains committed to its growth plans despite upcoming financial challenges.
- Alex Baldock, CEO of Currys, expresses determination to not let new tax burdens disrupt progress.
- The retailer faces an increased tax bill of £32 million starting April next year.
- Plans are underway to tackle these financial hurdles, including cost reductions.
- Baldock highlights the potential for price rises but considers it a last option.
Alex Baldock, the CEO of Currys, is steadfast in his commitment to ensuring the retailer’s growth trajectory remains unhampered despite facing significant financial pressures. He has articulated a clear intention not to allow new tax burdens, which include a £32 million increase in their tax bill from April, to derail the company’s progress.
In response to changes in National Insurance contributions, increased National Living Wage, and inflation-driven business rates, Baldock confirms that Currys has already formulated strategies to counteract approximately half of the impending financial threats. These plans are critical as they aim to streamline operations and bring about necessary cost reductions.“We’ve already got plans to deal with about half of these headwinds,” Baldock stated, indicating a proactive approach to the challenges ahead.
Despite the company’s success in decreasing its pre-tax losses from £44 million to £10 million over the first half of the year ending 26 October, thanks to a 1% rise in sales to £3.9 billion, Baldock acknowledges that they are not out of the woods yet. He has warned that the additional costs might necessitate price increases, though he stresses this would be a last resort for the business.
Baldock also critiques the recent budget, describing it as “unhelpful” for businesses in terms of jobs, prices, investment, and growth. However, he recognises the complexities faced by government officials in making these fiscal decisions. He emphasises his role in ensuring Currys’ success irrespective of political changes, reinforcing the company’s resilience and adaptability.
This sentiment is echoed by other industry leaders like Andrew Murphy, CEO of The Entertainer, who has similarly expressed concern over the additional tax burdens and their impact on business growth opportunities.
Currys is strategically navigating fiscal challenges to maintain its growth trajectory.
