Covid-19: Topps Tiles reports online surge amid overall revenue decline

Topps Tiles has reported strong growth in its online business during the Covid-19 pandemic, with sales increasing by three-times their pre-crisis level. However, the retailer said overall revenue decline significantly in this period, following the closure of stores to protect the safety of staff and customers. Stores were dark for the whole month of April, when revenue dropped 80%.

Topps Tiles financial results for the 26 weeks ended 28 March 2020 showed a like-for-like sales decline of 6.1%. Adjusted profit before tax was £1.2 million, compared to £8 million over the same period last year. This disappointing performance was partly attributed to the challenging trading environment of Covid-19.

Nevertheless, the retailer remains confident of navigating the current situation, revealing as of today it has a cash headroom of £14 million, despite it dropping from £21.7 million at the end of March.

Topps Tiles is also gradually re-opening its physical stores, and expects to have 250 fully opened by the end of May with the rest by the end of June. As a designated ‘home and hardware’ retailer, its stores are allowed to remain open during lockdown, despite earlier decisions to close in March.

Rob Parker, chief executive of Topps Tiles commented: "Covid-19 has created a complex and extremely challenging trading environment and I am pleased by the way the Group has responded to this crisis so far. We are prioritising the safety of our colleagues and customers, protecting the business and working hard to ensure we emerge from this period in the strongest possible position.

“The strong growth of our online business, the development of a collection-only store model, and the encouraging initial customer response to our phased programme of store re-openings, all demonstrate our resilience in the face of the Covid-19 threat.”

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