Topps reports 3.8% uplift in Q3
Published: 3 July 2019 - Fiona Garcia
Topps Tiles has seen sales rise nearly 4% during the last quarter, bolstered by its venture into the commercial market, and new range launches, as the retailer’s strategy of ‘out-specialising the specialists’ “delivers strong results”.
The sales jump in the last quarter follows a mixed first half, where sales were up just marginally at 0.2%, thanks to a decline of 1.4% in Q1 and 1.8% rise in Q2. It is also a significant improvement on last year, when sales in the third quarter fell 2.3%.
Topps CEO Matthew Williams said: "The business performed well over the third quarter with like-for-like sales growing by 3.8%. While this is in part due to a softer trading period in the prior year we are encouraged that the successful execution of our strategy is delivering good trading results."
Topps has attributed much of the increase to the launch of new ranges, as it strives to differentiate its product offer from others in the market. The flooring retailer launched 25 new ranges this year, with those launched in the past 12 months accounting for 20% of its sales in the period, and its core suppliers accounting for more than of 70% of its purchases.
The positive Q3 update follows the acquisition of Strata Tiles in April. Topps’ entry into the commercial tile market has reportedly doubled its addressable market and is set to provide “opportunities to leverage our competitive advantage”, says the company.
As well as improving its offer, Topps has invested in enhancing its customer service, launching its new customer feedback system, Tile Talk, at the start of the year. The retailer has achieved an overall satisfaction score of 87%, which it says places the business in the top five retailers in the UK.
In-store investments are also continuing, as Topps has expanded the roll-out of its latest merchandising initiatives and expects to have two thirds of the estate completed by the end of the financial year. Three new sites also opened during Q3, taking the number of retail stores currently trading to 365.