Wickes demonstrates “robust” 2023 sales performance

Although delivering a flat revenue, Wickes reports a robust performance, with profits ahead of expectations, in its full year results for 2023.

19 Mar, 24

Although delivering a flat revenue, Wickes reports it has demonstrated a robust performance in challenging conditions, with profits ahead of expectations, in its full year results for 2023.

Wickes delivers robust 2023 sales performance

The home improvement retailer reported total revenue of £1,553.8m against £1,559m in 2022, down 0.3% on like-for-like sales.

Statutory profit before tax was reported at £41.1million, up from £40.3million in 2022, and adjusted profit before tax was £52m – ahead of consensus.

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Retail revenue – sales from products sold to DIY customers and trade professionals – increased by 0.1% to £1,189.1million from £1,187.9million in 2022.

Wickes reported its Retail growth, formerly Core, was driven by a growth in membership of the TradePro scheme, with members up to 881,000 from 746,000 in 2022 and 11% sales uplift.

However, its Design & Installation, formerly Do-It-For-Me, sales were down 1.7% for the year.

These sales declines, in the second half of the year, were attributed to a more challenging market for big ticket projects, normalisation of its order book post-Covid and delays in order fulfilment, as the result of a new software implementation.

Wickes Mood of the Nation survey revealed consumer were increasingly planning to put more money into savings or undertake smaller home improvement projects, rather than a new kitchen or bathroom.

In response to the market, the company relaunched Wickes Lifestyle kitchens range to appeal to customers with lower budgets, with free design service, and saw a 24% increase in their sales in the second half of the year.

Wickes has also invested in a new Customer Experience Centre for all installation customers, with named individuals to co-ordinate and manage each project.

According to the company, while leads in the showrooms slowed “significantly” during 2023, due to market conditions, conversion rates continue to strengthen.

The company has continued to invest in “low cost, right-sized” stores, refitting 11 stores to modernise, offer more space including for kitchens and bathrooms, Click & Collect and Home Delivery services.

According to Wickes it has seen strong sales uplifts in the stores, particularly in Design & Installation.

In addition, the retailer also opened three stores in 2023, in Chelmsford, Widnes and Torquay, however closed four stores not meeting returns in Wigan, Loughborough, Paignton K&B and Darlington.

Wickes ended the year with 229 stores and has an estate target of 250 in the medium-term.

Most recently, the home improvement retailer has acquired solar installation company Solar Fast, allowing Wickes to expand its offering into home energy solutions.

Chief executive of Wickes, David Woods commented: “This has been another year of strong progress for Wickes.

“Our robust trading performance, targeted investment programme and disciplined cost control have delivered profits ahead of expectations.

“In the current economic environment, our unrivalled focus on providing great value and service had underpinned this performance.

“With this, I would like to thank each of my colleagues for their continued dedication and support, enabling us to achieve record customer satisfaction.

“I am also delighted to announce our acquisition of Solar First, which gives Wickes a majority stake in a leading operator in the emerging and exciting market for energy saving solutions.

“This acquisition enables us to rapidly accelerate our Design & Installation growth lever, capitalising on our expertise in installing major home improvement projects.”