Topps Tiles has launched a closing down sale at its Cheam store in Greater London, the latest branch to shut as part of 23 planned closures across the UK. Signs reading “everything must go” have been spotted in the store’s window, with the site set to close on August 7.
Eight stores already closed
In April, Topps Tiles announced it would close 23 branches as part of “significant self-help measures”. Eight stores have already shut, with a further 15 set to close over the next six months.
Reasons for closures
Management attributed the decision to geopolitical instability and inflation. Chief executive Alex Jensen said: “In light of subdued consumer sentiment and geopolitical uncertainty as well as the cumulative impact of cost inflation, the management team is implementing a targeted programme of self-help measures weighted towards the second half.”
Extreme heat adds to challenges
Earlier this month, Topps Tiles said extreme heat this summer had compounded its difficulties after tough trading. June heatwaves, which prompted rare amber and red Met Office warnings, led to sleepless nights, school closures, and travel disruption. The company reported that high temperatures forced tradesmen to pause work, hurting sales.
Sales decline and profit warning
The chain warned over annual profits after worse-than-expected sales. Sales fell 1.8% in the three months to June 27, with flat like-for-like revenues across its main brand worsening through the quarter. “Recent periods of extreme heatwave conditions led to temporary work stoppages among housebuilders and traders, further affecting activity levels,” the firm said. “Whilst there is likely to be a catch-up over a six-month period, this is unlikely to come back fully in our financial year which ends in September.”
