Following today’s release of Wickes’ figures for the 26 weeks ending 1st July 2023; Jamel Boughedda, retail analyst at GlobalData, a leading data and analytics company, offers his view:
“Wickes remains on course to achieve its full year expectations as sales grew by 0.7% in its H1 FY2023, driven by a 5.8% uplift in its do-it-for-me segment (DIFM – predominantly kitchens and bathrooms) and double-digit growth in trade. DIFM benefited from entering the period with a larger order book and maintaining growth. Bathrooms was a highlight for Wickes, aided by its extended range and the category’s more essential nature meaning that replacements are prioritised. Additionally, Wickes’ new Lifestyle kitchen range, with its additional design service, offers greater value and helps it to better appeal to customers it may have not attracted previously.
“Wickes’ core category saw like-for-like (l-f-l) sales decline by 0.8% following a weaker start to the year, as it went up against a tough set of weather-induced comparatives, though there were some bright spots. Investment in its click & collect offer led to a 5.6% rise in sales through this channel. Growth in click & collect has the additional benefit of driving footfall back to store, reducing the retailer’s distribution costs, helping improve awareness of its new ranges, and boosting impulse purchases. Sales through its TradePro offer increased by over 10% as it was able to attract 65,000 new members and its strong value credentials support growth. The positive indicators within trade mean Wickes’ greater presence in this category will support its future performance.
“Wickes’ adjusted operating profit declined despite its improved topline performance, down 25.4% to £42.0m due to cost inflation and ongoing investment in IT – which will hopefully boost its future performance and resilience. Inflation will continue to impact Wickes, although it expects its full year adjusted profit before tax to be in line with market consensus, between £45m and £48m. Trading in July and August was reportedly in line with expectations, as its new ranges, improved weather patterns and improvements to its store environment, with six store refits and five more planned for the year, help attract spending. We expect Wickes’ H2 to remain resilient as its extensive range of energy-saving goods becomes more pertinent, and its new DIFM ranges appeal to shoppers.”