Topps Tiles to close 23 stores as part of cost cutting drive
Topps Tiles is to close 23 underperforming stores as it begins rolling out a series of self-help measures to drive sustainable profit growth.
The group said the measures include cost saving interventions to increase efficiencies at its head office and stores as it faces a softer home improvement and DIY market and looks to offset government and macro-driven cost inflation,
Subscribe to TRBTopps is expecting the move to reduce overall Topps Tiles revenue but improve profitability through sales transference and cost reduction. Savings are expected to be weighted towards the second half of the year.
Alex Jensen, chief executive of Topps Tiles Group, said: “Topps continues to outperform a softer market. In light of subdued consumer sentiment and geopolitical uncertainty as well as the cumulative impact of cost inflation, the management team is implementing a targeted programme of self-help measures weighted towards the second half.
“These actions are designed to support year-on-year profit growth and provide a stronger financial platform for 2027 and beyond.”
Giving a trading update for the 26 weeks to 28 March, Topps said group revenue including CTD came in at £142.7 million, which was 0.1% lower year-on-year. This was due to the impact of volume loss from a lengthy CMA process in CTD.
Group revenue excluding CTD rose by 2.1%, although growth moderated slightly in the second quarter. Topps Tiles delivered like-for-like revenue growth of 0.1% in the period.
Topps said its online brands have continued to perform well with Pro Tiler revenue increasing by over 21% year-on-year.
