The home improvement retailer Wickes has said the outlook for its UK business remains “bright“, buoyed by young renters spending more to spruce up their accommodation.
The outlook contrasts with home improvement retailers in the US and the rest Europe that have painted a subdued picture for the sector during a period of inflation and a cost of living crisis.
“People that don’t own their homes are actually improving the home they rent and live in, and we’re doing really well here as 18- to 35-year-olds are our fast growing cohort of customers,” David Wood, the chief executive of Wickes, told Reuters.
The company reported a 3.5% rise last year in like-for-like sales – those in stores open for more than 12 months. Sales were almost 23% above pre-pandemic levels. Total revenue hit a record £1.56bn as it grew market share in its core businesses despite DIY sales easing from the highs seen during the height of the pandemic. DIY stores were given “essential retailer” status and allowed to stay open during lockdown, boosting sales as people forced to stay home took to improving theirs.
Wickes designs and installs kitchens, bathrooms and home offices, sells branded and own-label DIY products and runs a local network through which customers can hire tradespeople.
Against a backdrop of a slowing British housing market with fewer homes being built, the company said its exposure to new builds was limited and it was benefiting from homeowners improving their existing properties.
Wood said he would also focus on building out Wickes’ local trade business in 2023, as well as opening new stores and refitting old ones. The company plans to open 20 new stores in the next five years.
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Profit in 2022 also remained above pre-pandemic levels, despite an 11% year-on-year fall. Core sales in the first 11 weeks of 2023 were “moderately” behind the same period last year on lower demand for DIY.
