Currys-PC World owner latest to suffer Irish supply chain disruption

The group said it was confident the disruption was only temporary

Currys-PC World owner, Dixons Carphone, is the latest UK retailer to complain of Irish supply chain difficulties in the wake of the Brexit trade deal kicking in. File picture: Nick Potts

Electrical goods retailer Dixons Carphone has experienced what it calls “teething” problems with its supply chain into Ireland since the Brexit trade deal became effective at the start of the month.

The group – which trades here under the Currys-PC World, Carphone Warehouse and Dixons Travel chains – said it was confident the disruption was only temporary. It is the latest UK retailer to have Irish supply chain concerns in the wake of the Brexit deal, following stores such as of Tesco and Marks and Spencer.

“There have been some teething troubles when it comes to the Republic of Ireland business but in short we’re confident we can get over the disruption there,” Dixons Carphone chief executive Alex Baldock said.

Mr Baldock said it would take a matter of "days and weeks" – and not months – to resolve the matter.

“One of the areas that we benefit from being number one at what we do – we’re first in the queue for scarce stock with our suppliers and we’ve been able to manage the situation to keep some disruption to customers to a minimum,” he said.

Dixons Carphone reported an 8% jump in like-for-like sales in the UK and Ireland for the Christmas period – buoyed by a 118% surge in online sales. However, its shares extended their losses on no updated profit guidance and the warning of continued uncertainty over trading conditions.

Elsewhere, shares in Woodie’s DIY owner Grafton Group rose nearly 2% on the business reinstating its second interim dividend for 2019 – suspended due to last year’s Covid disruption – which will see it pay out £30m (€34m) to shareholders.

Meanwhile, WH Smith has said it expects to burn through £15m-£20m in cash per month over the first quarter of the year, if current restricted trading conditions continue.

The British newsagent and stationery retailer said trading over the Christmas period was better than expected and that it closed out 2020 with £340m of available cash and facilities after managing to generate cash at the tail-end of the year.

In November, WH Smith reported a pre-tax loss of £69m for the year to the end of August. 

It said it remained committed to its shops in Cork, Dublin, and Shannon airports despite Covid wiping out virtually all income from them during 2020.