Builders merchant Travis Perkins has revealed an uptick in sales in the three months to the end of September that helped it generate a 3.5% year-on-year increase in revenue.
This has put the DIY specialist on track to meet its full-year market expectations. However, it has still warned of ongoing uncertainty in the UK economy and has a “cautious” market outlook.
Chief executive John Carter said: “We have delivered a good like-for-like sales performance across the group in the third quarter. Trading conditions in our markets continue to be mixed, with consumer discretionary spending under pressure from rising inflation and ongoing uncertainty in the UK.”
On a like-for-like basis, revenues grew by 4.1%. Shares in the company, which slipped out of the FTSE 100 were bolstered, rising 3.3% to 1,521p in morning trading.
Fiona Panton, retail analyst, GlobalData, said: “Travis Perkins continues to outperform the challenging DIY market, and its closest competitors, as it reaps the rewards of investment in store refits at Wickes and its online capabilities, and proactively reduced space through subletting instore.
“Like-for-like growth has slowed over the period and was driven predominantly by inflation, as the reduced number of housing transactions affected performance. However, Travis Perkins still outdid Bunnings’s -6.8% overall growth for the three months to June 2017 and B&Q’s -4.7% like-for-likes between May and July 2017. The continued expansion of ToolStation, both domestically and in Holland, has also supported growth.
“As housing transactions fall and fewer consumers undertake major DIY projects themselves, Wickes has been right to focus on trade – the retailer introduced TradePro in July 2017, where Wickes offers a 10% discount to tradesmen. With the continued expansion of Screwfix, B&Q’s TradePoint offer and Bunnings going after the more experienced DIY consumer, initiatives such as this will maintain resonance with trade customers.
“Wickes’s proactive approach to online and the store environment means it is now able to focus on improving the customer experience while competitors play catch-up. With B&Q implementing its ONE Kingfisher strategy, and Homebase’s slow transition into Bunnings and its decision not to roll out click-&-collect, Wickes and Tool Station are perfectly placed to gain more share in the DIY market.”
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