Topps Tiles has unveiled a new growth strategy after swinging to a loss amid weakened demand.
The tile specialist is targeting £365m in full-year sales over the medium term – around £100m higher than 2023 levels– with adjusted pre-tax margins of 8% to 10% as part of its ‘Mission 365’ plan.
Topps Tiles chief executive Rob Parker said: “Notwithstanding the challenges of current market conditions, we believe that Topps Group has a substantial opportunity to increase sales and profitability over the medium term through our new growth strategy of Mission 365.”
The strategy includes the development of new digital platforms for Topps Tiles trade customers, entering new product areas adjacent to its core tile specialism, and maintaining the momentum behind its online pureplay businesses, Pro-Tiler and Tile Warehouse.
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Missions 365 comes as Topps Tiles reported a pre-tax loss of £1.5m in the 26 weeks to 30 March, compared to a £1.7m profit the year before.
However, on an adjusted basis, pre-tax profits plunged from £4.4m to £3.1m.
Sales dropped 5.8% to £122.8m, down from £130.3m, which the tile specialist attributed to lower footfall in stores.
Parker said: “Trading conditions in the first half have been challenging in a tile market which is down 20% on 2019. Against this backdrop, we are continuing to take market share, our online pureplay businesses are growing strongly and the group remains in a robust financial position.
“Lead indicators of market activity such as mortgage approvals, consumer confidence and smaller ticket DIY spend are improving, and while we are yet to see this feed through into our customer’s spending patterns, as market leader Topps Group remains well-positioned for recovery.”
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