Dixons sees strong Irish sales growth

The Irish arm of electrical goods retail group Dixons-Carphone saw strong sales growth over the Christmas period, with online sales at its Currys-PC World brand up 20% year-on-year.

The group trades here as Currys PC World and Carphone Warehouse. Currys sales were driven by high demand for smart home technology such as Amazon and Google Home devices, as well as game console and large screen television sales.

Carphone Warehouse also performed well during the peak trading period, with premium smartphone handsets from brands such as Samsung and Huawei attracting huge demand from Irish consumers over the Christmas period.

“Both Currys PC World and Carphone Warehouse experienced sales growth in line with expectations during the peak trading season,” said Dixons Carphone Ireland managing director Mark Delaney, noting gains in both its physical stores and online offering.

On a wider note, the British retailer outperformed a weak UK market over the key Christmas period, keeping it on track to meet its financial targets.

“Dixons Carphone must have been a prime candidate for a profit warning, but the company has wriggled off the hook, thanks to strong market share gains,” said independent retail analyst Nick Bubb after the company stuck to the financial guidance it issued last month.

Official data published on Friday showed that British consumers failed to increase their spending for a record fifth month in a row in December, adding to signs of economic weakening that might prompt the Bank of England to cut interest rates this month.

Dixons Carphone said growth in UK electricals and its international division offset continuing declines in mobile phone sales in its home market.

Dixons-Carphone’s Irish performance supports the suggestion that Irish economic confidence has improved of late. A survey by accountancy organisation ACCA said that confidence in the economy - amongst SMEs - rose by 20.5% in the final quarter of last year.

The Irish economy is buoyant against a global economy facing a sharp slowdown in global trade. In key domestic areas, the economy is holding up well.

"Notably in the housing market and agriculture. Unemployment is close to a 13-year low at 4.8% in December,” said ACCA chief economist Michael Taylor.

“The year ahead will be crucial, notably as the UK and the EU negotiate a post-Brexit trade agreement...It would be very positive if a free trade agreement was reached in what is a tight timescale,” he said.