Retail

Travis Perkins sees 2009 retail profits soar

(DIY WEEK) - Group revenue has fallen from £3,179m in 2008 to £2,931m in the 12 months to 13 December 2009.

However, the retail division, largely made up of Wickes, saw total sales increase by 4.3% from £940.7m to £980.7m with lfl sales increasing by 3.2% in the period.

This increase came despite the general economic uncertainty, following relatively stronger market conditions as consumers found their discretionary spending power had gone up.

The report put this down to reductions in mortgage costs, utility bills and other elements of their non-discretionary spend.

Wickes’ pre-tax profits soared from £10.2m to £57m in 2009. Lfl sales for the full year of Wickes’ core products were down only slightly by 0.8%, but kitchen and bathroom lfls were ahead by 27.7%, boosted largely by the demise of MFI in 2008.

The report said: “Wickes’ strong kitchen and bathroom (K&B) sales performance reflects Wickes’ initiative to capture market share following the withdrawal from the market in late 2008 of a significant K&B competitor. Wickes enjoyed great success with this initiative, exceeding its targets for share gain and taking more share than its overall market presence.”

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