Topps Tiles says DIY market 'very challenging' as households cut spending

Topps Tiles has reported a slowdown in sales this year, suggesting that households are delaying expensive home renovation projects.

Despite the downturn, the retailer claims to have outperformed the broader market. The company announced group sales of approximately £248m for the year ending in September, according to a trading update following its fourth quarter.

This figure is 5.7% lower than the previous year when Topps reported record revenues of £263m. On a like-for-like basis, which excludes the impact of new store openings over the past year, sales were down 9.1% from the previous year.

The firm described the sales environment as "very challenging across the whole year", with weak demand across the repair and maintenance sector, particularly for more expensive projects. Topps is among the DIY retailers highlighting a decrease in interest in home renovations due to rising living costs and higher mortgage expenses impacting housing purchases.

However, the tile specialist believes that sales across the repair, maintenance and improvement market have dropped by around 10% to 15% year-on-year, indicating it has performed better than some competitors. In August, Topps agreed to acquire 30 stores and the brand of tile supplier CTD Tiles for £9m after it went into administration.

CTD became insolvent due to pressure from the downturn in the home improvement sector, with demand failing to recover as anticipated. Bosses at Topps Tiles have expressed satisfaction despite a tumultuous market, with Rob Parker, the chief executive, saying: "In a year that has proved challenging in many ways, I am pleased by how well our teams have responded to the weaker market, demonstrating both our resilience and our ability to continue to outperform."

"Looking ahead, macro-economic indicators point to a stronger market in 2025," but he tempered expectations with a note of caution about the uncertainty ahead, adding that the "timing and trajectory of the recovery remains hard to predict".