Axe looming over branch
ANDREA LAMBROU
Builders merchant Travis Perkins could axe its East Kilbride branch as it prepares for a significant fall in demand for building supplies in the wake of the coronavirus pandemic.
Plans have been announced to close 165 Travis Perkins stores, resulting in the loss of 2500 jobs.
The UK’s biggest builders merchant, which also owns Toolstation and Wickes, said the decision comes as it expects the recession to hit the trade for at least two years.
Bosses plan to close mainly smaller general merchant stores which, locally, could include its College Milton East Kilbride branch.
Chief executive Nick Roberts said: “Whilst we have experienced improving trends more recently, we do not expect a return to preCOVID trading conditions for some time and consequently we have had to take the very difficult decision to begin consultations on the closure of selected branches and to reduce our workforce to ensure we can protect the Group as a whole.
“This is in no way a reflection on those employees impacted and we will do everything we can to support them during this process.”
The company, which operates a fleet of over 600 trucks, is to cut jobs in its distribution, administrative and sales divisions – amounting to nine per cent of the workforce.
Travis Perkins said: “While there has been a significant recovery in trading volumes in recent weeks, it is evident that the UK is facing a recession and this will have a corresponding impact on the demand for building materials during 2020 and 2021.
“Branch closures will be concentrated in the merchant businesses, in particular the Travis Perkins General Merchant, focusing on small branches where it is either difficult to implement safe distancing practices, or where marginal profitability will be eroded in a reduced volume environment.”
Travis Perkins added that over the past six weeks more branches have been opening
– DIY stores were deemed “essential” and allowed to remain open during lockdown.
Sales were down 40 per cent in May compared with the same month a year ago, but there have been strong sales in Wickes and Toolstation as households stuck indoors turn their hands to DIY.
Its general merchanting business is operating well, it said, with builders returning to homes to continue or start new residential jobs following a relaxing of rules on going back to work.
The firm added that plumbing and heating is “recovering more slowly as a greater proportion of plumbing work requires tradesmen to work in people’s homes”.
About half of its staff – 15,000 people – were furloughed for the first three weeks of the lockdown on full pay. The Travis Perkins board and top management took a 20 per cent pay cut for three months from May 1.