First quarter results from Travis Perkins show a significant uplift in performance at its Wickes DIY unit.
The chain has struggled in the last couple of years amid the tough trading conditions with the group implementing a series measures aimed at improving sales and profits.
In the three months to 31 March, like-for-like sales at Wickes jumped 10.5% with growth in both in its core DIY and kitchens & bathroom categories. Sales in the DIY category were said to have been driven by “strong execution”, although this was partially offset by the timing of Easter this year. Kitchens & bathrooms benefited from a good order book carried over from 2018 when a competitor decided to cease offering a design and install service for end-consumers.
Meanwhile, like-for-like sales at Travis Perkins’ other consumer chain Toolstation climbed 19.1%, boosted by the expansion of its store network, the launch of a new website, and the extension of online ranges. Toolstation is on track to open 60 new stores in the UK this year and is also expanding in Europe.
Across the wider Travis Perkins group, which also includes merchanting and plumbing and heating businesses, like-for-like sales were up 7.3% while total sales increased by 5.4%.
John Carter, the group’s Chief Executive, commented: “We have delivered strong sales growth in the first quarter of the year, which reflects both our focus on excellent customer service and the weak comparator in 2018. This performance is all the more encouraging given the impact of the on-going political uncertainty on our end markets.
“The Merchanting businesses have maintained the strong growth trend from the end of 2018, and Toolstation continues to grow extremely well, driven by network expansion and existing stores maturing. Wickes posted encouraging sales growth figures in both core DIY and showroom categories, demonstrating a strong turnaround in Kitchen and Bathroom performance.”
He added: “The actions set out at our capital markets day in December 2018 to deliver best in class service to trade customers and to simplify the group are well underway. We are making good progress on cost reduction activities and expect to meet our cost reduction targets this year. Overall expectations for the group in 2019 remain unchanged.”
NAM Implications:
- As always, the key issue for suppliers is how your Wickes business compared with these stats in the same period.
- Action: Build upon any over-trading…
- …and identify possible quick fixes re under trading…
