Tile retailer Topps Tiles has reported a drop in sales of 7.1% for the 13-week period ending December 30, 2023 (Q1).
Its trading update statement blamed challenges to discretionary consumer spending power, especially in the repair, maintenance and improvement (RMI) sector, for the fall in sales.
This was also reflected in the figures for the Topps Group, which includes its commercial arm Parkside and websites Pro Tiler Tools, Northants Tools, Premium Tile Trim, Warm Floor Store, Flooring Materials.co.uk and Tile Warehouse. Group sales were down by 4.1% for the first quarter.
The statement said Topps Tiles sales to trade customers proved more resilient than those to homeowners, while trading remained strong in its Online Pure Play division, with significant sales growth year on year, led by Pro Tiler Tools. Its commercial business Parkside was said to be profitable in the year to date.
The Group said it expected to gain further market share in the first quarter of 2024. It added that based on factors such as the timing of holiday pay accrual, higher energy usage in H1 and trading in the first part of the year,, it expected profits to be weighted towards the second half of 2024.
Topps Tiles currently has 303 stores nationwide.
In 2023, Group sales were £262.7 million, up 6.3% on 2022, while group operating profit was down from 2022’s £14.8m to £11.1m. Topps Tiles sales were £230.9m, up 1.7% from £227m in 2022.