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![\"Currys](\"https:\/\/www.retailgazette.co.uk\/wp-content\/uploads\/2023\/07\/Untitled-design-16-696x557.png\" "\\"Currys")
<\/div>\nCurrys boss Alex Baldock has warned price increases are set to continue as the electricals retailer looks to safeguard its profit margin.<\/p>\n
The chief executive also revealed it had started discussions about a possible tie-up with shareholder Frasers, which widened its stake in the business to 10.4% last week.<\/p>\n
\u201cThis is a potentially interesting partnership,\u201d he said, \u201cThere are a number of avenues that we\u2019re exploring.\u201d<\/p>\n
The retailer revealed on Thursday its profits had plummeted 38% to \u00a3119m in the year to 29 April 2023, dragged down by an 82% drop in earnings from its Nordics arm after heavy discounting at rivals led to its \u201clong track record of success brought to an abrupt halt\u201d.<\/p>\n
To help offset the weak performance of its international business, Currys has spent the last year focusing on strengthening its UK and Ireland margins.<\/p>\n
Subscribe to Retail Gazette for free<\/strong><\/h5>\nSign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span>\u00a0<\/span><\/strong><\/p>\nThe measures, which included \u201cpassing more of the cost increases on to consumers\u201d, means the retailer is on track to reach its \u00a3300m cost out target.<\/p>\n
Currys introduced delivery and installation fees for major appliances, as well as charging for new recycling services \u2013 which Baldock said is set to continue.<\/p>\n
\u201cWe\u2019ve increased our charges in some areas, and the customer is happy to pay it because they get a better service.<\/p>\n
\u201cIt\u2019s a win win and we intend to keep going with that,\u201d he said.<\/p>\n
Like-for-like UK and Ireland sales slipped 7% to \u00a35.1bn \u201cdriven by a fall in consumer spending due to persistent inflation\u201d.<\/p>\n
Keen to maintain its price promise, Baldock said Currys had been able to \u201cshield the customers from much of inflationary cost increases, but we haven\u2019t been able to hold back the tide completely\u201d.<\/p>\n
\u201cSome of those price rises have been passed through to customers.\u201d<\/p>\n
The measures, which included \u201cpassing more of the cost increases on to consumers\u201d, means the retailer is on track to reach its \u00a3300m cost out target.<\/p>\n
Currys introduced delivery and installation fees for major appliances, as well as charging for new recycling services \u2013 which Baldock said is set to continue.<\/p>\n
\u201cWe\u2019ve increased our charges in some areas, and the customer is happy to pay it because they get a better service.<\/p>\n
\u201cIt\u2019s a win win and we intend to keep going with that,\u201d he said.<\/p>\n
Like-for-like UK and Ireland sales slipped 7% to \u00a35.1bn \u201cdriven by a fall in consumer spending due to persistent inflation\u201d.<\/p>\n
Keen to maintain its price promise, Baldock said Currys had been able to \u201cshield the customers from much of inflationary cost increases, but we haven\u2019t been able to hold back the tide completely\u201d.<\/p>\n
\u201cSome of those price rises have been passed through to customers.\u201d<\/p>\n