// Travis Perkins posts decline after lockdown affected sales
// The Wickes owner now expects a recovery
// It undertook a full restructuring of the business in June
Travis Perkins has recorded a decline in profits and revenues as the Covid-19 lockdown forced the closure of 165 stores back in June.
The building supplies retailer, which owns Wickes, recorded an 81 per cent decline in profits year-on-year in the first half to £42 million.
Revenues declined by 20 per cent to £2.79 billion in the six months to June 30 and 19 per cent on a like-for-like basis.
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- Travis Perkins half year sales drop 20%
- 2500 jobs on the line as Travis Perkins shuts down 165 stores
Despite its losses, the retailer said it is now on the path to recovery.
Travis Perkins went through a full restructuring of the business in June, including the closure of 165 of its stores.
At least 2500 jobs were axed as a result of the closures, which made up nine per cent of the total workforce.
Travis Perkins kept around a third of its merchant branches open during lockdown, while Wickes became fulfilment centres for both delivery and click-and-collect orders.
“Throughout the pandemic, the health and safety of our colleagues and customers has been our primary concern,” Travis Perkins chief executive Nick Roberts said.
“Customer interactions have changed significantly resulting in changes to the way we do business, from increased activity through digital channels through to alterations to our physical store formats in order to maintain safe working practices.
“Although our financial performance in the first half of 2020 was impacted by the Covid-19 pandemic, and we have had to undertake a restructuring programme in light of the challenging outlook for the group’s end markets.
“We have made significant strategic and operational progress against the four strategic priorities we outlined at our full-year results in March 2020.
“Although considerable uncertainty around the impact of the Covid-19 pandemic remains, the actions we have taken to adapt and innovate in our businesses mean that the group is well placed to continue to service our customers, support our colleagues, outperform our markets and generate value for our shareholders.”
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