Travis Perkins has reported a 1.6% fall in group revenue for the three months to 30 September 2026, with UK construction activity remaining subdued. Behind that figure is a clear divide. Its merchanting businesses saw like-for-like volumes fall 9.0%, while Toolstation UK grew volumes by 1.8%.
For suppliers of tools, hardware, building materials and home improvement products, the update offers a useful read on trade demand. It suggests the smaller-ticket, trade-counter end of the market is holding up better than core merchanting.
Merchanting: margin over volume
Total merchanting revenue fell 2.6%, and like-for-like revenue was down 2.2%. Price and mix rose 6.8%, offsetting much of the steep volume decline.
The group said UK construction output and volumes remain subdued, particularly in new build residential, as macroeconomic uncertainty continues. The merchanting businesses are actively managing their transaction mix, prioritising higher-margin trade and limiting credit risk. Travis Perkins says this is helping to protect profitability despite lower volumes.
Two other factors affected the quarter. The business is comparing against deeper promotional activity in the third quarter of last year. It is also focused on passing through input cost inflation, against what it describes as an inflationary backdrop this year.
Toolstation UK: steady growth
Toolstation UK grew total revenue by 3.7%, with like-for-like revenue up 3.6%. That growth was split evenly between price and mix (+1.8%) and volume (+1.8%). Year to date, Toolstation UK revenue is up 3.0%. The business is expanding in line with expectations, and further store openings are planned for 2027.
Toolstation Benelux remains challenging, with revenue down 3.8%. The group continues to explore options through its strategic review of that business.
Chief executive Gavin Slark said: “In challenging market conditions we remain focused on what we can control.” The group will set out more detail on its strategy and operational priorities at its preliminary results in March 2027.
What does this mean for suppliers?
- Construction demand remains weak. New build residential is singled out as the softest area, with no sign of recovery in this update.
- Toolstation’s growth is volume-led as well as price-led. For suppliers into the tools and trade-counter channel, this points to steadier demand than in core merchanting. Planned 2027 store openings also suggest continued range and space expansion.
- Expect a firm focus on margin and cost pass-through. Merchanting is prioritising higher-margin trade and looking to pass on input inflation, which is likely to shape trading conversations with suppliers.
- The promotional climate may be less intense than a year ago. The group says it is annualising deeper promotions from Q3 2025.
