Toolstation To Exit France; Benelux Under Review

Travis Perkins has confirmed it is working on a plan for a potential exit of Toolstation France, where it operates from 51 stores, and is conducting a strategic review of options for Toolstation Benelux, where it has a network of 118 stores.

Click here for Toolstation UK results

Toolstation Europe

France

Toolstation France delivered sales growth of 29% in the year but losses increased to £18m as six new stores were added alongside further investment in infrastructure. Despite some positive progress  in the past year, the business in France faces long-term challenges which significantly increase the time and investment needed to achieve profitability.

These challenges include:

• Building brand awareness
• Serving the trade in a less populated region
• Ongoing weak demand in the end market

Taking these factors into consideration, and with forecast losses expected to increase to £20m in 2024, management has concluded that the investment required to reach profitability is no longer sustainable and, today confirms that it is working on a plan for a potential exit of the business. Any decision will be subject to a prior consultation process with the relevant employee representatives.

February 2023: Toolstation France Goes Live With Virtualstock 

December 2020: Toolstation France returns To Growth 

Benelux

Although sales grew by 10%, performance overall in Benelux in 2023 was significantly below management expectations with a loss of £19m in the year (2022 : £15m). The increase in losses was a result of weak gross margins, cost inflation and the additional costs of the second distribution centres alongside six new branches.

Management forecast losses to narrow to around £12m in 2024 in Benelux and now anticipates that the Netherlands business will reach break-even point, on an annual basis, by 2025 with Belgium expected to reach profitability by 2028. With end market conditions expected to remain challenging in the near term and the delay to reaching profitability, management have commenced a strategic review of both businesses. 

March 2019: Toolstation To Open Pilot Stores In Belgium 

April 2018: Toolstation Opens New Store In Den Bosch, The Netherlands 

Source : Travis Perkins plc

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