Subdued consumer confidence in the home and DIY sector is now stabilising, according to Wickes CEO David Wood.
The boss of Wickes, which held profit guidance today upon reporting a drop in sales and profits in its half-year results, said there was a clear stabilisation in its customers’ intent to spend more on the likes of new kitchens, bathrooms and other big-ticket home improvements.
Wood told Retail Week: “We have practical good, better, best retail tiering, and typically our Bespoke ranges operate in better and best and that’s where we’ve seen softness, but it has now definitely stablised.
”When we look at our consumer research, which we run every month, we ask people looking for kitchens and bathrooms ‘what is your intent to do a kitchen or bathroom project over the next 12 months?’ and year-on-year that response has now stabilised, which is good to see.
“My view at the moment is we can see clear stabilisation, and as things start to move forward in a more positive macroeconomic sense, where housing transactions increase, interest rates come down and consumers are generally just feeling a bit more confident around their finances, that’s when I think things will start to lift again.”
For the 26 weeks to June 29, 2024, adjusted profit before tax at Wickes reached £23.4m, down from £31.1m during the first half of last year.
Total revenue dipped by 3.4% year on year from £827.7m during the first half of 2023 to £799.9m during the period, while retail revenue was up 1% to £633.2m despite design and installation revenue at the home & DIY specialist falling by 17% to £166.7m.
Wickes hailed its record market share gains in retail during the first half and said it saw “particular gains” across categories including decor, garden, tiles and flooring.
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