Currys says rising costs being passed on to shoppers and warns of impact on sales

Currys has said growing costs are being passed on to shoppers and warned of inflation's impact on sales.

The chain said the "outlook on consumer spending is uncertain" as it revealed that pre-tax profits almost quadrupled to £126m in the year to April, compared with the previous year.

Currys said: "On most products we pay in local currency when the goods arrive in our markets, the price increases we are seeing at the moment will be felt by all of our competitors as well.

"These costs are passed on to consumers, but we seek to proactively mitigate through providing similar, different specification products at alternative price points."

Currys said inflation is "very likely to create a headwind to consumer spending and impact sales, particularly in some of our more discretionary categories".

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"Here we are doubling down on our customer offer and will do all we can to help customers," the retailer said.

Although its revenues fell slightly, the company told investors it was buoyed by £69m in savings through cost-cutting over the year.

Chief executive Alex Baldock emphasised Currys' efforts to help customers.

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"Our scale as an international market leader, our grip on costs and our strong relationships with suppliers will allow us to manage inflationary headwinds and keep amazing technology within reach of everyone, even now," he said.

"That's what Currys exists to do, and it's never mattered more."

He announced a "2021 Price Lock" which would freeze prices for dozens of products and said Currys was "doing more to help customers spread the cost" with a scheme to delay payments on purchases over £99.