TP consumer division (Wickes, Tile Giant and Toolstation) posts 8.7% Q1 sales rise

Travis Perkins’ consumer arm, which largely consists of Wickes, has reported continued sales growth of 8.7% for its first quarter in 2015.

The retailer also reported like-for-like sales growth of 6%, while its two-year like-for-like sales growth was 13.3%.

John Carter, chief executive, said: “The Wickes team have built on the positive customer feedback and success of 2014 and continue to take market share.

“Our three priorities for the year ahead remain unchanged: the modernisation of Travis Perkins, the transformation of Wickes, and the re-segmentation of the Plumbing & Heating businesses.

“The progress we are making underpins our confidence that the plans we have in place and the investments we are making will support further outperformance of our markets, medium-term double-digit operating profit growth and continued growth in return on capital.”

Wickes said its kitchen and bathroom sales had recovered against a weak comparative period, but this was offset by lower roofing and fencing sales following high levels of storm damage in early 2014.

“Although still early in the implementation, the expanded outdoor product range has been well received by customers,” said the retailer. “Wickes has also extended its investment in price to further enhance its market-leading position with attractive offers on insulation, paint and power tools. Online sales continued to grow strongly particularly through the implementation of click-and-collect.”

Over the last year, Travis Perkins has set about a transformation programme for its retail arm Wickes, making improvements to value, branded ranges, promotions and customer service, while also unveiling a new website and click-and-collect service.

In March it posted a full-year profit increase of 22.7% from £63m in 2013 to £77m. Its revenue grew 8.8% to £1.3bn, while like-for-like sales grew 7.3% for its year ending December 31, 2014.

Meanwhile, the retailer’s owner also recently announced the creation of 4,000 new jobs over the next four years, predominantly outside London and the southeast.

Source : Caroline Baldwin - Retail Week
www.retail-week.com