(Bloomberg) -- The chief executive officer of Currys Plc said there were signs that some consumers have become more willing to splash out on big-ticket items, despite Britain’s ongoing cost-of-living crisis.
Alex Baldock, CEO of the electrical retailer since 2018, said while consumers were “still pretty hard pressed,” there had been a rise in spending in the past couple of months.
“We’re often first in and first out of a downturn and we flagged particularly strong trading for the last two or three months of the financial year in the UK,” said Baldock in a phone interview. “So while I’m being deliberately prudent in our planning and what we’re saying about it, if you wanted to be more optimistic about the future of the UK, there are grounds to do so.”
Read More: UK Cost-of-Living Crisis Fades With Outlook for Higher Incomes
Currys is the UK’s biggest electrical retailer, stocking products such as TVs, refrigerators and mobile phones. In a trading update for the year ending April 29, it raised its profit forecast for the UK, where it reported better-than-expected sales. Group full-year adjusted profit before tax is expected to be between £110 million ($137 million) and £120 million, compared with previous guidance of about £104 million.
Shares rose more than 6% in early trading.
While the company reported strong sales in the UK, Currys has been hit in the Nordics, where rivals have slashed prices to sell off excess stock. Currys has responded by installing a new chief executive for the region and cutting costs, including jobs.
Despite a brightening picture in the UK, Baldock said there were still signs of a “squeezed middle.” Sales of expensive televisions costing more than £1,200 remained strong, along with cheaper TVs costing less than £500. Mid-range televisions were down, he said.
Customers were also continuing to spend on credit, which made up a fifth of sales.
“The consumer is still pretty hard pressed and the cost-of-living crisis does continue to bite and people are being cautious in their spending habits,” said Baldock. “That said, they are continuing to spend and the market is still larger than it was pre-pandemic.”
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