Major homeware chain issues big warning as Easter sales plunge in another blow to UK high street
A MAJOR homeware retailer has suffered a hit to its first-half profits in another blow for the British high street.
Topps Tiles reported an 11.3% tumble in like-for-like sales in its second quarter to March 30 as property owners continue to put home improvement on the back burner.
It sees the group’s sales woes deepen, with the decline picking up pace since the 7.1% drop seen in the previous quarter.
Topps said the second-quarter performance was also impacted by the timing of Easter holidays this year.
The group said: “Subdued demand in the domestic repair, maintenance and improvement sector, especially for bigger ticket projects, has persisted into 2024, resulting in lower footfall into Topps Tiles stores.”
The firm said that first-half profits would be impacted by a number of factors, including the weaker market and “seasonally higher energy usage”.
It reiterated that full-year profits are set to be weighted towards the second half of its financial year.
The update showed that overall revenues fell 5.9% in its first half, to £122.6 million.
Topps has seen trading ease back since enjoying record sales in its previous financial year as customers have tightened their belts due to high inflation and interest rates having been hiked to their highest level since 2008.
Topps said trade customers were still proving more resilient, though trade sales were also lower year on year in the first half.
Its online brands, such as Pro Tiler and Tile Warehouse, saw strong trading, with half-year sales up 38.3%.
Topps was founded in 1963 and now has 304 stores across the UK.
What else is happening on the high street?
Retailers have been feeling the squeeze since the pandemic while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year and more are on the way.
Several major brands have also collapsed, such as Wilko and Paperchase, The Body Shop and Ted Baker.
Many high street retailers have been struggling to get by, especially during the Covid-19 pandemic.
Energy costs have risen and more shoppers than ever are choosing to order online rather than head into stores.
This has left some retailers grappling with budgets and have no choice but to close stores to cut costs.
Several big-name chains are pulling down the shutters for the final time this month.
Boots is set to shut another 10 shops in the coming weeks.
The move by health and beauty retailer Boots forms part of plans to close 300 sites.
Joules, known for its wellies and raincoats, pulled down the shutters on another of its stores in Stratford.
Matalan closed down one of its branches in Leeds on February 24.
High street designer brand Kurt Geiger has pulled down the shutters on its shop in Brighton.
Department store Fenwick also shut its flagship London store in Bond Street on February 3.
Entertainment retailer HMV also shuttered its branch in Boston, Lincolnshire, on January 27.
Nespresso shut three town centre outlets in March, leaving shoppers worried about where they can recycle their used capsules.