Travis Perkins, the retail-to-building group, today laid bare the pressure on big-ticket spending by posting a slump in underlying sales at its DIY chain Wickes over the past 11 months.
But the group, which operates the eponymous builders’ merchants chain, performed better at its other divisions, suggesting spending among tradesmen is proving more resilient in the downturn.
Wickes’ like-for-like sales fell 5.8% to November 30. It was hit by the wettest summer and spring in more than 100 years, which decimated sales of garden furniture and barbecues.
While Wickes’ sales decline was worse than that posted by the DIY market leader B&Q recently, all home improvement retailers are battling a sustained downturn in consumer spending and a stagnant housing market.
Mortgage approvals hit a nine-month high of 33,000 in October, but remain a country mile from the 80,000 monthly rate of four years ago.
Joseph Robinson, a senior consultant at Conlumino, said: “It has become increasingly apparent that the glass ceiling in DIY has been lowered to a significantly lower level in recent years. Most pertinently,the housing market, which was the pre-eminent driver of enthusiasm for home improvement, is showing no signs of meaningful upturn over the next 12 to 18 months.”
Total sales at Travis Perkins’ consumer division rose by 13.3% but there was a 1.8% fall in group like-for-like sales.
