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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Retail

Can Currys lift itself out of the bargain basement

Few are expecting a cheery update next week given the economic backdrop

Shares in electrical retailer Currys currently sit around their five-year lows, which pretty much explains how recent trading has gone.

Under intense pressure from deep-pocketed online rivals, it’s been tough in short and next week’s update is likely again to reflect that.

Hargreaves Lansdown points out that “online competition means Currys is often forced to ‘invest in pricing’, which is a fancy way of saying it gets the sale stickers out”.

Operating margins are languishing in the region of 2%, which leaves very little room for error, adds HL.

Thow in the current uncertain economic backdrop and people pulling in their horns and Christmas trading season this season on might be more important than ever.

Currys recently cut the full-year dividend adding it had seen a surge in customers utilising credit services.

Whether that trend has continued will also be worth noting.

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