Currys warns of Omicron hit to Christmas trading

Electronics retailer Currys has warned of weakening trading in the run-up to Christmas as the Omicron variant of Covid hits demand.

But the firm said it was "riding out" the challenges, while the technology market was now "sustainably larger" than it was before the pandemic.

"We may face into further headwinds from Omicron and associated restrictions," Currys said.

However, it remained "on track" to meet expectations of higher profits.

Currys is the latest firm to warn of the impact of the new Covid variant, with signs that consumers are moderating their behaviour in response to the threat by going out less.

Those who can work from home are now urged by the government to do so, while face coverings are a legal requirement in most public indoor areas.

Currys' comments came as the store chain unveiled a 20% rise in adjusted pre-tax profit to £48m in the six months to 30 October.

It said it expected full-year profits of about £160m, up from £156m in 2020-21.

The retailer, which recently changed its name from Dixons Carphone, said it had coped well with global supply chain problems, although it had seen some impact on availability and sales of some in-demand products.

"For example, in large-screen TVs, our customers might have to do with a choice of 100 models, rather than the 120 that we would prefer to put in front of them," chief executive Alex Baldock told reporters.

"We're calling this out as a challenge, but we're also calling this out as a challenge that we're riding out."

Mr Baldock said market demand would have its short-term ups and downs, but the "big picture" was of "a technology market sustainably larger post-pandemic".

"Hybrid working will become normal and in-home entertainment will continue to grow," he added.

"More time at home means more usage, and more customers' eyes have been opened to what new technology can do, both of which point to faster replacement."