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Topps Tiles Plc has announced plans to close 23 underperforming stores in the current financial year as part of a targeted programme to offset cost inflation and support profitability.
According to the group, the closures are expected to reduce overall revenue but improve group profitability through cost savings and the transfer of sales to stronger locations and channels.
The initiative follows a period of moderated growth in the second quarter and is weighted toward the second half of the year, supporting the company’s profit outlook for 2026.
Management said the decision reflects a softer home improvement and DIY market, which declined by approximately 2.5% over the past six months.
In parallel, the group is implementing efficiency programmes at its head office to establish a more sustainable cost base heading into the 2027 financial year.
For the 26-week period ended 28 March 2026, the retailer posted total group revenues of £142.7m, a marginal year-on-year decrease of 0.1%.
Performance was impacted by volume losses linked to the prolonged CMA process affecting the CTD business. Excluding CTD, group revenue increased by 2.1%.
The CTD division reported like-for-like growth of 1.0% in the first half, with housebuilder volumes beginning to recover.
Additionally, online channels continued to outperform the physical retail estate, with digital sales now accounting for 21.0% of total group revenue.
Pro Tiler also delivered revenue growth of over 21%, while Fired Earth returned to profitability in the first half following its acquisition.
The company is also progressing a system modernisation programme, including an ERP upgrade and the rollout of new point-of-sale systems, which began in March 2026.
Despite ongoing geopolitical uncertainty and subdued consumer sentiment, Topps Tiles stated that it continues to “outperform” the wider DIY market.
Interim results for the first half are scheduled for publication on 19 May 2026 and are expected to provide further detail on the impact of the store closure programme.
Alex Jensen, chief executive, said: “Topps continues to outperform a softer market. In response to subdued consumer sentiment, geopolitical uncertainty, and cost inflation, we are implementing a targeted programme of measures focused on the second half. These actions are designed to support year-on-year profit growth and provide a stronger financial platform for 2027 and beyond.”
