By James Davey
LONDON (Reuters) - British electricals retailer Currys (LON:CURY) is currently not anticipating a significant impact on both supplies and costs from disruption to shipping in the Red Sea, its boss said on Thursday.
"As it stands we're confident there won't be significant disruption to more than a few products and we'll be able to handle the delays," CEO Alex Baldock told reporters after Currys updated on Christmas trading.
"And ... we're not at the moment looking at significant cost rises," he said.
However, Baldock did caution: "If conflict in the Red Sea escalates or endures it will affect everybody."
Separately on Thursday, Poundland owner Pepco Group warned that inventory levels could be impacted if disruptions to shipments due to attacks by Iran-backed Yemeni Houthi militants in the Red Sea continued through 2024.
Currys' Baldock said the firm was used to dealing with supply chain disruption, having navigated the COVID-19 pandemic.
He said as market leader, Currys was first in the queue when stock was scarce and it had improved its supply chain, with product availability up 21 percentage points on two years ago.
"We've learnt to carry a little bit more cover, we've got six to eight weeks cover of the key lines," he said.
Currys finance chief Bruce Marsh said the group was currently not seeing an impact on higher freight costs.
"We've come from a very turbulent period over the last two or three years where freight costs were significantly higher, so actually we're in a position where year-on-year those rates have come down."
"Of course they could step-up again depending on how the situation plays out and we consider that as part of our basket of costs within the business."