Following today’s release of Wickes’ figures for the 13 weeks to 31 December 2022; Jamel Boughedda, retail analyst at GlobalData, a leading data and analytics company, offers his view: “Wickes proved resilient in its fourth quarter, with a particularly strong performance in its DIFM (do it for me) segment despite question marks over big-ticket spending as it continued to work through its elevated order book. The group’s DIFM division reported L-F-L sales up 34.5% against an omicron-affected comparison and total sales were up 11.5% which is admirable given uncertainty regarding consumer confidence.
“Wickes’ L-F-L core sales grew 5.2%, bouncing back from a weaker year to Q3 and showing its robustness following the pandemic boom. The retailer continues to make strides in its digital TradePro customer base, which grew 18% year-on-year to reach 746,000 users. Despite DIY sales remaining below the prior year, sales stabilised towards the end of the quarter as consumers searched for more ways to save on their energy bills, buying products like loft insulation and draft excluders. With the cost-of-living crisis likely to continue into the first half of 2023, Wickes’ continued focus on energy-efficient goods will be vital in the coming months to retain customers, as they look to cut back on spending wherever possible.
“Wickes added that its order book at the end of December was lower than 2021, but above 2019 levels. Orders in the fourth quarter were moderately down, although on an improving trend from the third quarter, which has continued into Q1 and is in line with the prior year. As the cost-of-living crisis continues to deter big-ticket spending, the group’s TradePro scheme will become especially vital and its recent partnership with Klarna should help to convert website traffic into sales.
“Its strong Q4 performance boosted Wickes’ full year results, as total sales grew 3.5%, aided by L-F-L sales growth of 26% in its DIFM segment, with the retailer confident of achieving full year PBT in line with market expectations of £72-76m. Its strong Q4 performance boosted Wickes’ full year results, as total sales grew 3.5%, aided by L-F-L sales growth of 26% in its DIFM segment, with the retailer confident of achieving full year PBT in line with market expectations of £72-76m. With the price of timber starting to come down and inflation easing, consumers may have more confidence in undertaking DIY projects in 2023 boosting Wickes’ appeal.”
