musicMagpie has advised that it expects its profits for the current financial year will fall below expectations, joining a number of businesses which are experiencing falling demand. In particular, musicMagpie has been experiencing slower sales in its consumer technology division which accounts for some 60 per cent of its business.
In particular, its own device rental service is impacting its outright retail sales with customers choosing to rent rather than own due their own financial circumstances. However, the business says that rentals will be significantly more profitable over the life of devices.
Business is expected to be brisk over Black Friday but musicMagpie is downplaying expectations as the worsening economic outlook will likely suppress demand.
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