Topps Tiles has taken a bit of a hit in third quarter like-for-like sales, which the retailer blamed on “weaker consumer environment”.
Over the 13 week period ending July 1, like-for-like revenues decreased by 2.3 per cent.
Topps Tiles had reported a 3.4 per cent rise in sales in the first three months of this year, but fortunes reversed in the second quarter when revenue dropped 2.2 per cent.
This means the retailer’s third quarter marks its worst period so far, although it is still an improvement on the 4.7 per cent like-for-like sales decline recorded in the third quarter last year.
Topps Tiles said its latest quarterly result “has been reflective of a weaker consumer environment” yet it still believed it was outperforming the overall tile market.
“Against this background, we believe that we continue to outperform the overall tile market and we are maintaining our focus on tight cost control and strong underlying cash generation,” the retailer stated.
It also opened two stores but closed three over the last three month, bringing its store total to 375.
This is more than the 367 sites it had this time a year earlier.
Topps Tiles said it was making strides with its core strategy, which includes efforts to gain retail market share through a store investment program, with 140 sites now decked out with the latest merchandise and a raft of promotional activity.
It is also expanding its commercial segment, having recruited a new sales team to work on leads for future projects.
“The trading environment remained challenging during the third quarter but we are pleased with the resilience of our performance, which we believe remains ahead of the overall tile market,” chief executive Matthew Williams said.
“Our business has a market-leading position, remains well-invested and is in a strong position to capitalise on future growth opportunities as they arise.
“We have approximately doubled the size of our addressable market through our expansion into the commercial tile market segment and are focused on leveraging our specialism and competitive advantage across both retail and commercial channels.”