Essential reading for retailers and suppliers in the home improvement market

Topps’ LFLs continue downward trend in Q3

Published: 4 July 2018 - Fiona Garcia
 

The tile specialist’s latest trading update revealed a 2.3% decline in like-for-like (LFL) sales for the 13 weeks ended July 1, as Topps reports challenging market but strives to stay ahead with investments in promotional activity and a stronger range.

It follows a similar drop off in Q2, when LFLs were down 2.2%, resulting in a flat first half for Topps, despite posting a 3.4% LFL increase in the first quarter.

The group said trading was reflective of “a weaker consumer environment” but maintains that the business is still in a strong position and continues, “to continue to outperform the overall tile market”.

In response to the tough trading environment, Topps said it has maintained its focus on tight cost control and strong underlying cash generation; completing a refinancing of its loan facility, which comprises a £35million revolving credit facility with a £15million accordion.

In a bid to strengthen its customer offer and remain competitive, the business has also invested in retail promotion activity and has focused on sustaining price leadership in the trade sector.

Topps Tiles CEO Matthew Williams said: "The trading environment remained challenging during the third quarter but we are pleased with the resilience of our performance which we believe remains ahead of the overall tile market.  Our business has a market-leading position, remains well-invested and is in a strong position to capitalise on future growth opportunities as they arise. 

“We have approximately doubled the size of our addressable market through our expansion into the commercial tile market segment and are focused on leveraging our specialism and competitive advantage across both retail and commercial channels."

Topps said it is making good progress with its core strategy of “Out-Specialising the Specialists" in order to extend the company’s market-leading position in the UK tile market. 

It has been focusing in-house on developing product differentiation from competitors and bringing exclusive rages to market. During the quarter, it extended its Statements range of indoor/outdoor tiles, extended its trade brands, and listed exclusive product collections into its commercial business, Parkside.  In total, Topps has launched over 20 new ranges this year.     

Topps continues to grow its estate and currently operates 375 stores within the UK, having opened two and closed three stores during Q3. In 2017, it traded from 367 stores.

 

Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

What do you think?


As we near the end of the summer season, which category is the biggest for you in the build up to autumn and winter?






Latest reader comments

re: B&Q overhauls kitchen and bathroom sales process

B&Q bob
They have taken away showroom staff commission most earning a minimum of £300 a month and replaced it with an extra 50p an hour! So the ...

re: Homebase creditors approve Company Voluntary Arrangement proposal

Robert
Does this mean other premises in the same retail parks, with the same landlords, will also see their rents reduced by 50%? It is only fair!...

re: B&Q overhauls kitchen and bathroom sales process

BQ bob
No employees will be worse off! That's what they said when they changed staff wages two years ago now older staff are £2300 a year worse ...

re: Clas Ohlson to close Croydon store, as it continues to “optimise” UK store base

Leonardo
Clas Ohlson was a favourite shop for shopping. Over the years since it opened I always shopped for small electronic items which were very ...

re: Clas Ohlson to close Croydon store, as it continues to “optimise” UK store base

L Shepherd
It is a pity CL couldn't move across the road to Centrale and set up a new format shop there. Now there is no other shop like Clas Olson ...

Most read stories

Blog and Comment

Dawn of a new age in customer service

Customer service used to be about answering telephones and responding to written requests, but our fast paced, social media driven society ... Read More >>