Wickes owner sees like-for-like growth from price increase
Published: 19 October 2017 - Kiran Grewal
The owner of home and DIY retailers Wickes and Toolstation saw like-for-like sales jump 4.1% in third quarter of the year, up from 2.7% in the first six months, alongside total sales growth of 3.5%, with a 5% growth specifically in the consumer division.
The overall 2.7% like-for-like increase has been reported as coming from price increases and mix changes. This was "in line with expectations" as the Group's businesses focused on mitigating the impact of cost price inflation.
Travis Perkins PLC said "despite continuing to invest in value to maintain price leadership in both Wickes and Toolstation, gross margin was unchanged in the period."
“We have delivered a good like-for-like sales performance across the group in the third quarter against a challenging market backdrop of input cost inflation and market volatility,” chief executive John Carter said.
“Trading conditions in our markets continue to be mixed, with consumer discretionary spending under pressure from rising inflation and on-going uncertainty in the UK economy.”
The consumer division saw a 7.3% increase in total revenue since H1 2016, with Wickes "outperforming a tough DIY market".
The group have reported the increased investment to expand Toolstation in Europe in the future.
Travis Perkins PLC in their merchanting division has reported that the General Merchanting division saw like-for-like sales grow by 2.4%. In the period, the heavyside range centre network was extended to support all Travis Perkins branches in England and Wales, with this market-leading proposition now available to a significantly larger customer base.