Kesa group chief executive Thierry Falque-Pierrotin questioned the impact US electricals giant Best Buy will have in the UK as Kesa posted better than expected results.
Best Buy’s UK debut next year in a partnership with Carphone Warehouse has stoked fears that incumbent electricals players DSGi and Kesa-owned kesa” class=”intextlink”>Comet will suffer. But Falque-Pierrotin said Best Buy would not have scale at launch. “I don’t think in the short term they will make a revolution in the market.”
“In the UK we’ve had a very competitive electricals industry. In terms of square meterage the market is well covered. There’s a good mix between discounting and service. Finding their way will not be easy.”
Kesa group retail profit soared 50.6% at constant currency to £24.3m in the six months to October 31; sales rose 7.6% to £2.35bn. Comet cut its interim loss from £8.1m last time to £1.2m. Managing director Hugh Harvey expected Comet to make a higher full-year profit this year than last.