THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Topps Tiles reports falling sales

Tile and flooring retailer Topps Tiles said its like-for-like revenues edged down 0.2% in the six months to the end of March, reflecting weaker levels of consumer confidence in the period.

GENERAL MERCHANDISE

Topps Tiles reports falling sales

Tile and flooring retailer Topps Tiles said its like-for-like revenues edged down 0.2% in the six months to the end of March, reflecting weaker levels of consumer confidence in the period.

Although group revenue increased 0.9% to £87.4 million, adjusted profit before tax dropped to £4.7 million from £5.6 million a year ago.   

Following growth in revenues of 1.6% on a like-for-like basis in the first quarter, the group said that weakened consumer confidence in the second quarter led to a 2.1% decline in like-for-like revenue. This resulted in like-for-like revenue decreasing by 0.2% across the period as a whole. Like-for- like sales over the eight weeks to 25 May fell by 2.6%.

In light of the difficult trading environment, Topps said it had implemented a range of self-help measures to improve its customer proposition. This included a focus on customer service, strong ranges and multi-channel convenience. In addition, a series of cost saving and efficiency measures are expected to reduce operating costs by around £2 million over the second half of the financial year.

Topps Tiles chief executive Matthew Williams said: "In response to the weaker market conditions we saw across the second quarter, we are implementing a programme of self-help initiatives and significant cost reduction measures and are pleased with the progress made to date. 

"However, we are also mindful of the current trading environment which has deteriorated slightly over the last eight weeks. At this early point in the second half, assessing the likely impact on the full year outcome is difficult, but we continue to be cautious on the like for like sales outlook for the remainder of the current year."

During the six-month period, Topps traded from an average of 322 UK stores compared to 319 a year ago.

Operating costs were £46.5 million, compared to £45.1 million in the same period last year. On an adjusted basis, operating costs were £45.8 million, versus £44.6 million a year ago. Topps said the main drivers of the increased costs were inflation and a small rise in the number of stores trading which, when combined, increased the retailer’s cost base by £1.2 million.

Williams added: "While recent indications of an improvement in the UK housing market give encouragement for the future, it is too early to judge the sustainability of this trend and given the historic relationship between housing transactions and home improvement spend, any impact on trading conditions can be expected to lag a recovery. That said, Topps remains well placed to respond to any sustained increase in housing market volumes. Against this backdrop, we will continue to focus on taking further market share as we consolidate our position as the UK's number one tile retailer."

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
Fix The Dinosaur Roundtable 2018
Fix The Dinosaur Roundtable 2018
19 October 2018
The Euston Suite, The Hallam, 44 Hallam St, London W1W 6JJ
A Masterclass in IBMi Legacy Issues