Dixons Carphone has announced that all 35 Dixons Travel stores, which typically contributed more than £20 million to annual profits are to close.
In a statement, Dixons Carphone said: “We do not expect passenger numbers to recover sufficiently to compensate for the removal of airside tax-free shopping by the UK Government from 1 January. This has led to the difficult decision to close this business, which historically made an annual profit contribution of over £20m.”
This announcement came as Dixons Carphone released its latest trading statement, reporting that since January, “trading has remained strong”.
The company reported that in the 25 weeks to April 24, despite the continued closure of stores, like-for-like sales in its UK and Ireland electricals division were up by 11%.
Online sales within the same division more than doubled to over £4.5 billion for the entire year.
Dixons Carphone, meanwhile, said it had reimbursed all Government support for the £73m of furlough paid to UK and Ireland colleagues during the year.