Wickes and Toolstation revenue drops in the aftermath of abysmal weather.
Travis Perkins today announced mixed results across the Group; revenue and l-f-l sales fell in the consumer division, caused by the inclement weather conditions, but was offset by a welcoming performance in plumbing & heating (which saw revenue growth of 15.1% as it reaped the rewards of its investment programme). While Wickes’ and Toolstation’s mix of gardening products is less than B&Q or Homebase, the harsh weather still dampened footfall and, along with weak consumer confidence, contributed to consumer like-for-likes falling by 4.6%. Overall consumer sales growth was lifted by a 1.5% contribution from new openings, predominantly from new Toolstation outlets.
Despite a challenging start to 2018, Travis Perkins’ prior investment in its stores and online will help it ride the storm. Capital expenditure focus is currently on the ongoing expansion of the Toolstation network – which opened its 300th store in February – and concurrent digital renovations, as it works to keep pace with Kingfisher’s Screwfix. At Wickes, refreshed kitchen and bathroom areas instore have contributed to improved showroom orders compared with Q4 2017, now similar to those seen in Q1 2017.
Source: GlobalData 27 April 2018
April 2018