Topps Tiles moots options to bolster sales

Chief executive Matt Williams said there is a big opportunity for Topps Tiles to extend its customer base by targeting professionals such as house builders and architects.

He said: “The contract market is as big as the retail market. We don’t sell into it currently. It’s interesting and we’re looking at it but it’s not an easy market to break in to.”

The retailer is also considering options for its operations in the Netherlands, which could include the closure of all its stores there.

Topps Tiles’ Dutch like-for-likes plummeted 17 per cent in the first half to March 28, against a decline of 3.7 per cent in the comparable period last year. Losses widened from £100,000 to £600,000. The retailer closed four stores in the country in the first half and is now trading from 18. It expects to close another seven there in the second half.

Williams said: “The storm has well and truly hit Holland. Trading is tough. We’ll continue to close stores as they become a drain on costs. Exiting is an option.”

Of Topps’ first-half performance in its core UK market, Williams said: “It’s been a tough six months. We are seeing a slowing of decline, which is very different from an actual recovery.

“There is still uncertainty in the economic outlook, but we are seeing some stability. In January and February people were talking about the end of capitalism as we know it, which weighed heavy on the consumer, but consumer confidence has picked up a little since.”

Topps’ pre-tax profits slumped from £17.6m to £7.5m in the first half, although the performance was better than the City had feared.