Dixons Carphone is set to close its airport shopping business, just months after the UK government announced plans to remove airside tax-free shopping.
In a trading update, the electrical retailer said that it did not expect passenger numbers to “recover sufficiently” to compensate for the removal of the tax.
This is despite the Dixon Travel chain, which has 35 branches across the UK, making an annual profit contribution of over £20m.
It comes one week after the group also announced plans to shutter all its Carphone Warehouse branches in Ireland – a decision which the retailer said was “accelerated” by the changing shopping habits of consumers during Covid-19.
Elsewhere, the group revealed that its sales have improved during the pandemic, with Dixons reporting a sales growth of 11% in the 25 weeks to 24 April and 13% in the 51 weeks to April 24.
In addition, the retailer has also reported a “very strong online growth” with group electricals online sales doubling to over £4.5bn for the year.
Given the strong financial position, the group, which is headed by Alex Baldock has reimbursed all government support for the £73m of furlough paid to UK colleagues during the year.