The Courier & Advertiser (Fife Edition)
Builders’ merchant to cut 600 jobs in shake-up
retail: Wickes owner Travis Perkins to close more than 30 branches
Major UK builders’ merchant Travis Perkins is cutting 600 jobs as part of a restructure of its branch network.
Shares in the firm fell significantly in early trading yesterday after the Wickes DIY chain owner revealed it expected underlying earnings for 2016 to be “slightly” lower than expected, and cautioned over its outlook for the coming year.
The update to the market included details of the restructuring of the group’s trade businesses. It said it was shutting more than 30 branches across its UK network, and 10 smaller distribution centres were also being closed.
The group is also carrying out are view of its plumbing and heating division.
The company said all affected staff had been made aware of the situation but it did not provide a comprehensive list of the branches due to close with its update to the market.
The group operates a number of Travis Perkins outlets across Tayside and Fife as well as having a presence through its Wickes DIY chain.
Travis, which employs 28,000 staff group-wide, said it hoped to relocate some of the affected staff to other sites.
Branches are expected to close across its trade brands, such as Travis Perkins, kitchen and joinery arm Benchmarx, and plumbing and heating businesses BSS and PTS.
The overhaul came as Travis Perkins said full-year underlying earnings would be “slightly” lower-than-expected, while it cautioned over the outlook for 2017.
It said: “Given that levels of future demand remain difficult to predict, the group has chosen to implement a number of efficiency programmes and branch closures to further optimise the network.”
The group said the heating and plumbing division will see the bulk of the branch closures after a “disappointing” performance in the third quarter in the face of worsening trading conditions.
It plans to report back on its review of the business next year.
It added that its general merchanting business saw better trading in the quarter, while consumer-facing chains Wickes and Toolstation put in “very strong performances”.
Overall like-for-like sales grew 2% in the third quarter, Travis said.
Travis CEO John Carter said: “It is still too early to predict customer demand in 2017 with certainty and we will continue to monitor our lead indicators closely.”
Travis is half-way through a five-year overhaul of the group, which is seeing it shut unprofitable stores and expand in better performing areas.
Shares fell 66p (4.4%) to 1,422p.