JD.com could compete with Amazon in the UK with Currys acquisition

Currys is the leading electrical markets retailer in the UK.

The reported bid for electrical appliance retailer Currys acquisition will enable China’s JD.com to gain a foothold in the United Kingdom, competing with e-commerce giants such as Amazon in the market, according to GlobalData.

Currys is the leading company in the sector, making it an “attractive acquisition proposition,” despite the significant decline in electrical market share in the UK to 19.1% in 2023 from 22.3% in 2014

However, the growth of Amazon, which saw a 7.7 percentage points increase to 17.2% during the same period, poses a threat to Currys, but Currys’ omnichannel offerings will allow it to retain its lead.

News reports said that JD.com is making an offer to acquire Currys following its rejection of a bid from US investment firm Elliot.

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This move to diversify its presence will provide JD.com with protection from the slowdown in China sales, said Emily Salter, Lead Analyst at GlobalData.

“However, Currys has struggled to generate growth recently due to the impacts of high inflation on consumer willingness to buy big-ticket items and growth in the UK electricals market is set to be sluggish in 2024,” she said. 

“Acquiring Currys would not bear fruit immediately, but JD.com’s ownership of it could enable it to bolster its online operations further, helping it better compete with Amazon,” Salter added.