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Wickes reports flat 2010 sales


Home and DIY retailer Wickes has reported flat sales growth in 2010, according to a preliminary results announcement from parent company Travis Perkins today.

The building materials supplier said that sales in its retail division grew 3.3 per cent due to price inflation but sales volumes fell 3.1 per cent, resulting in a like-for-like (LFL) trading increase of 0.2 per cent.

Despite the uncertain retail environment of 2010 and the accompanying reduction in consumer confidence, which had a particularly adverse effect on companies such as Wickes which rely on big ticket item sales, Travis Perkins’ retail division increased its market share over the course of the 12-month period.

LFL sales of kitchen and bathrooms at Wickes were up 9.5 per cent year-on-year, while the retailer’s core product sales were down by two per cent.

Overall revenue for the retail division increased by 2.3 per cent over 2010 to reach just over £1 billion, with sales from new branch openings contributing 2.1 per cent to this growth.

2011 has reportedly started well for Travis Perkins and last month Wickes launched a new scheme in collaboration with EDF Energy, which allows customers to purchase four insulation rolls for the price of one at stores across the UK.

Running until the end of 2012, the initiative aims to draw in customers who are looking to save money on their utility bills.

Summarising last year’s results, today’s statement said: “All retail markets were tough in 2010, with non-food, and particularly our own segment of DIY, badly affected by falling consumer confidence.

“Against this backdrop our retail division outperformed its market by around six per cent, with further improvements to our customer proposition, particularly in our multichannel operations, where our superior technologies and fulfilment operations have helped us make significant gains in revenues.

“We are pleased that, with increasing use of retail channels by tradesmen, our market share gains have been greatest in that segment of the market.”

LFL revenue for the entire Travis Perkins group, which comprises 11 separate businesses, was up five per cent to £3,153 million.

Published on Wednesday 23 February by Editorial Assistant

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