Toolstation sales exceed £300m

Travis Perkins announced their full year results earlier today and in this report, we focus specifically on the performance of Toolstation.

The network with over 300 branches grew their sales to over £300m in 2017, with accelerating like-for-like sales growth in the second half, and this strong momentum has continued into 2018.

Read Wickes hit by tough second half of 2017.

The focus over the last three years has been to rapidly grow the store network whilst delivering a superior value proposition to customers. In 2017, a further 40 stores were opened in the UK, taking the total to 295 at the end of the year, with a further 40 planned in 2018. In February 2018, the business opened its 300th UK store in Eastleigh.

Enhancements to the customer proposition accelerated in the second half of 2017, focusing on:

• Stronger promotional and marketing programmes.
• The introduction of front-of-counter ranges.
• Further online range extension, including the roll out of “drop-ship” delivery direct from suppliers.
• In 2017, 2,800 additional products were added to the product range, with further extension planned in 2018.
• Improvements to delivery service, increasing capability from 5 day to 6 day delivery, and moving to 7 day delivery in 2018, combined with later order cut-off times and click & collect times reducing to 10 minutes.
• A third replenishment distribution centre will open in mid-2018 increasing capacity to support 500 branches.

Like-for-like growth of over 30% in the Group’s associate company in the Netherlands, both through the online channel and the branch network was very encouraging. New store openings brought the network to 20, and strong like-for-like growth provides the confidence to open a new distribution centre and double the number of branches in 2018.

A three branch trial around the new distribution centre in Lyon, France commenced in Q4 2017 and is progressing well. Revenue growth continues to build through the online platform in France, and also in Belgium and Germany which are serviced from the existing distribution centre in the Netherlands. 

Download the full year results presentation here.

Source: Insight DIY Team & TP Results Statement.

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