Topps Tiles Announces Major Store Closure Programme
British tile retailer Topps Tiles has revealed plans to close 23 stores across its portfolio as part of what it describes as "significant self-help measures" to reduce expenses. The Leicestershire-based chain, which operates 319 outlets nationwide, stated that the closures represent approximately 7% of its total estate and are a response to a challenging home improvement market and escalating operational costs.
Timeline and Impact of the Closures
Eight of the underperforming stores have already ceased trading since September of last year, with the remaining 15 locations scheduled to shut down over the coming six months. The company has not disclosed the potential impact these closures will have on its workforce, leaving employees uncertain about their future employment status.
In addition to the store closures, Topps Tiles is implementing cost-saving measures at its head office as part of a broader restructuring effort. Chief Executive Alex Jensen explained the rationale behind these moves, citing subdued consumer sentiment, geopolitical uncertainty, and persistent cost inflation as key factors driving the decision.
Financial Performance and Market Context
The group reported a marginal sales decline of 0.1% to £142.7 million for the six-month period ending 28 March. This slight dip was reportedly influenced by a lengthy competition process and a disposal programme necessitated by regulatory concerns following Topps Tiles' acquisition of CTD out of administration in 2024.
When excluding the CTD business from the figures, sales actually increased by 2.1%, though growth slowed significantly to just 0.6% in the second quarter. Despite these challenges, the company maintains that it has outperformed the wider DIY and home improvement market overall.
Leadership Changes and Strategic Acquisitions
Alex Jensen assumed the role of chief executive on 8 December, following the retirement of former long-standing boss Rob Parker. Under Jensen's leadership, the company has pursued both divestments and acquisitions as part of its strategic repositioning.
The Competition and Markets Authority (CMA) investigated Topps Tiles' acquisition of CTD, requiring the company to sell off several CTD stores to address competition concerns. This left Topps with 22 CTD stores, down from an initial 31.
In a separate move last December, Topps Tiles purchased the brand of collapsed rival Fired Earth for £3 million after the Oxfordshire-based competitor entered administration in October. This acquisition followed the closure of Fired Earth's 20 UK showrooms and resulted in 133 job losses.
Future Outlook and Profitability Goals
Topps Tiles stated that the cost-saving initiatives, while likely to impact overall sales figures, are designed to enhance profitability. The company aims to support year-on-year profit growth and establish a stronger financial foundation for 2027 and beyond.
The group reported a statutory pre-tax profit of £8.3 million for the year ending September, marking a significant turnaround from the £16.2 million pre-tax loss recorded in the previous year. Topps Tiles is on track to return its CTD division to profitability in the 2025-26 financial year, with the division achieving like-for-like sales growth of 1% in the first half to 28 March.
The company will release its half-year financial figures on 19 May, providing further insight into the impact of these restructuring measures and the overall health of the business in a challenging retail environment.
