Topps Tiles shares tumble as it unveils plans to shut over 20 stores
Topps Tiles shares tumbled on Wednesday after the DIY staple unveiled plans to shut more than 20 stores as it wrestles with weak demand and rising inflation.
The Leicester-based business said it intends to shutter 23 stores by the end of its financial year as part of a series of “self help measures” as it prioritises profitability over sales.
“In light of the softer Home Improvements & DIY market, and to offset government and macro-driven cost inflation, the group has begun rolling out a series of self-help measures to continue driving sustainable profit growth in the medium term,” Topps Tiles said.
“These include cost-saving interventions to increase efficiencies at head office and across the store portfolio, including the closure of 23 underperforming stores across the financial year.”
The firm reported revenue of £142.7m for the six months to end March, a fall of 0.1 per cent, but better than the 2.5 per cent drop across the wider market, according to Barclays research.
Topps Tiles was already forced by the competition regulator to close four CTD stores following its recent acquisition of the tiling rival. Topps tiles will keep just 22 CTD stores open, well down from its original 86 stores, following the latter’s collapse into administration in 2024.
Topps Tiles shares sunk 8 per cent to 32p in the opening minutes of trade on Wednesday. The stock is down by more than a quarter since the start of the year.