Dixons Carphone has said its ecommerce channels in the UK and Ireland have recovered around two-thirds of sales lost to store closures as it cancelled its full-year dividend for shareholders.
In a trading update ahead of publishing its full-year results, the electricals retailer said that in the five weeks to April 25 its online channels had seen 166% sales growth, compared to 23% in the 11 weeks to March 21.
The retailer said its UK, Republic of Ireland Greek stores that are currently closed would have been expected to have contributed £400m in sales for the financial year, but its online business has “maintained our unambiguous price promise, continued investment in delivery and carried on growing our range for customers”.
The electricals and mobile specialist currently has 950 stores closed across the group.
It said it had adjusted shift patterns for online staff to “keep colleagues in the same pairs and vehicles wherever possible”. Staff have also been equipped with masks and safety equipment, and deliveries have been done on a “no-contact basis”.
Repair and installation services have been limited to washing machines, cookers or refrigeration units, and Dixons Carphone warehouses have “introduced extensive measures” to keep staff safe.
Dixons Carphone said it had extended its debt facilities with its lenders by £266m and now has access to over £1.3bn in borrowing.
These added borrowing facilities, on top of the measures the retailer announced in late March for furloughing staff using the government’s salary scheme and tightening up its discretionary spending, mean Dixons Carphone is in “a robust position”.
“We expect to comply fully with bank covenants unless substantially all of our operations are required to close for an extended period,” it said.
Chief executive Alex Baldock added: “I’m humbled by the speed and skill with which thousands of our colleagues have reacted to this crisis in safely helping millions of customers and securing the business’ future. I can’t thank them enough.
“We’re setting new social distancing and hygiene standards that allow us to provide vital help to customers through the lockdown, to keep them connected with loved ones, their families fed, clean and entertained, work from home and home-school the kids. We’ve given extra help to vulnerable older people, in partnership with Age UK, and prioritised the NHS.
“This vital role is reflected in customer demand: wherever we’ve been open, our sales performance has been strong. In the Nordics, our stores continue to operate to high social distancing and hygiene standards, providing a successful blueprint for how our UK stores can safely reopen as soon as the government so decides. And we’re innovating; launching live video shopping for online customers and contactless shopping in-store.
“We’re being prudent in conserving cash, have secured additional funding, and can plan for the future with confidence. We remain committed to our longer-term transformation and will use everything we’re learning through this crisis to build a better business for customers, colleagues and shareholders.”
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