Currys boss not expecting ‘significant disruption’ from Red Sea clashes

The boss of UK electronics retailer Currys warned that the barrage of costs and red tape that retailers have to deal with will fuel inflation.

The group is not currently anticipating a significant impact on supplies from disruption to shipping in the Red Sea, chief executive Alex Baldock also said on Thursday. However, he warned a prolonged conflict in the region will “affect everybody”.

UK retailers face higher costs due to a rising minimum wage and tax increases starting in April, as well as from a government proposal to stop them from charging customers for recycling. The Irish minimum wage also rose at the start of this year.

Mr Baldock called on UK chancellor Jeremy Hunt to change his mind on the recycling plan, saying it was too late to reverse course on the minimum wage.

“The biggest inflationary pressures are coming from [the UK] government themselves,” Mr Baldock said on a call with reporters on Thursday. “The combination of the minimum wage, the rate hike and some very misjudged proposals on recycling, all of them are adding to an already overburdened sector which is the largest private sector employer in the country and on which presumably we depend heavily in the UK to lead us out of economic difficulty.”

Currys recycles half of all electrical waste in the UK, offering what the chief executive called a good service to customers.

Mr Baldock also sought to ease concerns about potential supply chain blockages arising as a consequence of Houthi attacks on shipping vessels in the Red Sea in solidarity with Gaza. “If conflict in the Red Sea escalates or endures it will affect everybody,” he said. “As it stands we’re not experiencing or expecting significant disruption.”

Currys shares jumped as much as 10 per cent on Thursday after the company said annual profit will be ahead of market expectations following a robust Christmas period. Mobile sales were particularly strong in the UK and Ireland while TV and computers were weaker. – Additional reporting: Bloomberg