Heatwave demand for air con and fridges drives up sales for Marks Electrical

The Leicester-headquartered company reported its revenue grew 13.7% to £27.7 million in the four months to July 31.

Anna Wise
Thursday 11 August 2022 10:31 BST
A surge in people buying air conditioning and replacing their old fridges during the spell of hot weather has driven up sales for electrical retailer Marks Electrical Group (Beresford Hodge/ PA)
A surge in people buying air conditioning and replacing their old fridges during the spell of hot weather has driven up sales for electrical retailer Marks Electrical Group (Beresford Hodge/ PA) (PA Wire)

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A surge in people buying air conditioning and replacing their old fridges during the spell of hot weather has driven up sales for electrical retailer Marks Electrical Group.

The Leicester-headquartered company reported its revenue grew 13.7% to £27.7 million in the four months to July 31, up from £24.3 million a year earlier.

Consumers were snapping up air conditioning units, vacuum cleaners, washers and dryers, and televisions, the retailer said.

The UK has experienced a heatwave in recent weeks with temperatures soaring to more than 40C (104F) in some parts of the country.

Marks Electrical, which offers a free, next day delivery service, said that sales rose despite challenging conditions, as rising inflation chips away at households’ disposable income.

Mark Smithson, the group’s chief executive, said: “We’ve seen strong competitive activity both in pricing and marketing, with heavy discounting of headline prices and higher cost per click marketing expenses.

“Despite this, we have maintained our tight control on inventory, cost management and disciplined capital allocation, ensuring we are in a healthy cash position and remaining focused on profitable market share gains.”

Mr Smithson added that the outlook for the remainder of the year is difficult to predict, however.

Shares in the company lifted by more than 6% following the trading update on Thursday.

However, shares have slid by more than 35% since the retailer first listed on the London Stock Exchange, back in November last year.

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