Electricals retailer Currys has cautioned it will have to hire fewer staff due to the cost hit from Budget measures as it looks to offset a soaring wage bill.
Chief executive Alex Baldock said the group does not plan to cut jobs among its 28,000-strong workforce, but is set to cut back on hiring as it faces an extra £32 million in wage costs after recent Budget moves to hike national insurance and the minimum wage.
It already warned last month that price rises will be “inevitable” after revealing the extra costs, saying at the time that the measures would “depress investment and hiring”.
Mr Baldock said on Tuesday: “What we’re looking at, at the minute, is a period of reduced hiring.
“What we want to be able to do is employ more people.”
He called on the Government to look at phasing in the increase in employers’ national insurance contributions, which is due to come into effect from April, to help soften the blow, as well as to overhaul business rates.
Despite the extra costs, Currys hiked its full-year profit outlook after robust festive trading, sending its shares surging 11% in Wednesday morning trading.
It posted a 2% rise in UK like-for-like sales for the 10 weeks to January thanks to strong sales of laptops, mobile phones and gaming ranges, although this was partially offset by weaker trends in television sales.
Its under-pressure Nordics division also returned to growth over the peak trading season, with sales up 1% in the 10 weeks.
The group now expects underlying pre-tax profits to rise by between 23% to 31% to £145 million to £155 million.
