CMO hails early signs of recovery as consumer confidence softens sales fall
Listed online-only building materials firm CMO said improved consumer confidence in the past few months has helped to soften the impact of declining sales.
The firm, which is headquartered in Plymouth, said sales started to tick up in the three months ending July 31, 2024, after wet weather dampened demand in its first quarter.
As a result, it’s like-for-like sales only reduced by 17 per cent from the same period the year before – a stronger performance than the 21 per cent reduction seen in the three months ending March 31, 2024.
CMO said its plumbing business performed best of all its divisions, with sales down 12 per cent during the half and up nine per cent in July.
However, its tiling division was hit hard by lack-lustre demand, with sales down 36 per cent during the six month period, and 27 per cent in July.
Despite this CMO said it was “optimistic” that sales would continue to increase given “developments in the market” and the recent cut in interest rates.
It added that its average prder value was improving with consumer confidence returning to larger repair, maintenance and improvement projects, in line with trends reported in the wider market.
Chief executive Dean Murray said:”We are pleased to see early signs of market recovery and are further encouraged by the interest rate cut last week, which will stimulate the market.
“The full launch of the landscaping superstore marks further, great progress in our mission to provide our customers with everything they need to build or maintain a home.
“We also look forward to seeing how the ‘Super Rewards’ programme enhances customer loyalty as it rewards for spend and behaviours.
The positive sales momentum shown throughout Q2 and into July, combined with our focus on profitable sales and becoming a more efficient business, means that we remain confident about the future.”