“Challenging market conditions” have caused design & installation revenue to continue to decline at Wickes, which has also seen relatively flat revenue growth in retail.
In its latest trading update, the retailer recorded a 17% decrease in design and install revenue from this time last year, reporting a figure of £166.7M. In terms of like-for-like revenue, Wickes saw a decrease of 18.3%.
Earlier in the year, Wickes’ reported that its completed design and install orders were down by around 18% compared to 2023, which Wickes attributed to “a particularly strong performance in the comparative period for the prior year”.
Analysing its performance across the period, Wickes said: “Design & Installation delivered sales in the half reflected the continued soft consumer appetite for larger ticket purchases and a strong comparative in H1 2023”. However, the retailer did say that its strategic focus on lower-priced Wickes Lifestyle Kitchens have delivered good results, with sales volume up by almost 19% year-on-year.
Wickes’ retail figures were more positive, but still showed relatively flat growth. In the first six months of the year, the retailer reported pulling in £633.2M in revenue, which equates to a 1% growth. Wickes’ like-for-like revenue growth increased by 0.6% across the period.
Despite the flat growth in retail sales, Wickes said its retail figures “remain resilient”, and added that it has “continued to increase market share to record levels, demonstrating the continued strength of Wickes’ great value and service-led proposition”.
Specifically, Wickes said its TradePro sales had been particularly strong, and are up 14% this half. The retailer said its registered number of TradePro members has increased 18% year-on-year, but D.I.Y sales remained in “moderate decline”, as it believes that customers are focusing on smaller products.
The combined retail and design & install figures total revenue of £799.9M from January to June 2024. This equates to a 3.4% revenue decrease, and almost 4% like-for-like revenue decrease compared to this time last year.
This week, Wickes also confirmed it was making job cuts across its design and installation department, looking to “simplify and improve the customer experience”, which it says will result in cost savings for the company.
David Wood, Wickes’ chief executive, commented: “Our excellent value and service-led offer gives DIYers and tradespeople reason to keep coming back to Wickes. Against a challenging trading backdrop, we have grown volume and taken further market share in Retail, with our TradePro scheme continuing to show strong momentum as local trade professionals turn to Wickes to save them time and money. We’re seeing good demand for our lower-priced Wickes Lifestyle Kitchens, reflecting customers’ desire for quality and value.”