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?


Is housewares a growing category for your business?

Latest reader comments

re: Acana tackles carpet moths with carpet & fabric moth killer and freshener

Stephanie Ferrante
Hello, could someone from customer service call me - I am located in the US and we have a moth/ carpet issue. I am going to purchase this ...

re: Tommy Walsh: 'I'm really proud of my £1 tools'

Gregory ciacci
paint brushes good but paint roller sponge keeps fallinf off as i am painting doesnt help if i am doing big front room wall like i have ...

re: B&Q overhauls kitchen and bathroom sales process

Elliott
No BQ employees affected - how come???when they're unemployed and losing a wage.....derrrrr...

re: Kingfisher opens first net zero energy store

Guy Eames
well done kingfisher! I’m going to make this store my main diy supply base. Perfect example of where sustainability is a win-win. ...

re: The Range to take over Homebase store in Cardiff

susan way
please can you tell me when the new range will be open on culverhouse cross is please thank you...

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 >>