Following today’s release of Topps Tiles FY figures for 2019/20, Georgina Sreeves, Retail Analyst at GlobalData, a leading data and analytics company, comments:
“Topps Tiles has benefited from consumers decorating their homes, with average weekly sales in September up 14% to £4.6m and orders yet to be fulfilled at the start of FY2020/21 ahead of this time last year. The revenue uplift in July through to September means the retailer is confident of a modest profit this year. Despite this, the commercial sector has recovered more slowly than retail since the pandemic hit.
“The tile specialist should be wary of advancements made by competitor B&Q, which recently announced that it would be trialling concessions in four ASDA superstores. According to GlobalData’s Decorative DIY 2020 report, 29.1% of those that purchased tiles did so at B&Q, compared with 17.8% at Topps Tiles; this gap may broaden as B&Q continues to increase its brand awareness.
“However, there is reason for Topps to remain positive as the business holds a strong cash position, and reports that consumers, at least for now, have returned to pre-COVID behaviours, with visiting a store the main touchpoint of a customer journey. This is reinforced by GlobalData research which shows 57.9% of consumers were comfortable with visiting non-essential shops in September (2,000 respondents). Topps, along with other retailers, will have to navigate market uncertainty for some time yet with new COVID measures likely to influence consumers once again. Topps will need to ensure its online offer can meet the increased demand.”