Published 14th Dec 2023, 12:01 BST

The group saw sales decline by four per cent on a like-for-like basis over the six months to October, compared with the same time last year.

Shoppers have remained squeezed by persistent inflation and rising interest rates, helping drive a decline in all its international markets.

Group chief executive Alex Baldock said: "On the one hand, the consumer is hard pressed and confidence is pretty bumpy. Interest rates have been rising... and consumers are cautious about their spending.

Currys saw sales decline by four per cent on a like-for-like basis over the six months to October, compared with the same time last year. Picture supplied by Currys.

"But on the other hand, real wages have continued to climb, employment has stayed high, people have retained savings, and customers are treating themselves."

In the UK and Ireland, a decline in its share of the market was partly driven by its deliberate actions to prioritise profits over sales, the firm said.

But it cheered growing momentum on sales of its longer term customer services.

That includes the growing use of credit purchasing options which rose to more than a fifth of all sales, its "care and repair" plan which incorporates breakdown cover, and mobile SIM cards.

Mr Baldock said that customers were benefiting more from credit because their finances are squeezed, meaning they can spread the cost of a big-ticket purchase across several payments or choose a buy-now-pay-later option.

But he stressed that the company lends responsibly.

Furthermore, the boss revealed that some products were flying off the shelves, including games consoles and the video game Call of Duty, with people spending a bigger portion of their entertainment budget at home.

Coffee machines were also selling well, and the "air fryer phenomenon shows no signs of dying out", Mr Baldock said.

Post-lockdown, more consumers have been buying premium haircare and beauty products rather than visiting salons, the retailer's sales trends also suggested.

Meanwhile, Currys' Scandinavian business has been struggling and it has pledged to get the division "back on track".

Currys revealed it managed to shrink its pre-tax losses from £548m last year to £46m this year, in its latest update to investors.

It also stuck by its current expectations for full-year trading.

Mr Baldock said: "Our priorities this year are simple: to get the Nordics back on track, to keep up the UK and Ireland's encouraging momentum, while strengthening our balance sheet and liquidity.”

Currys reports falling sales as consumer spending remains under pressure