Wickes finishes strongly as demerger looms, says GlobalData

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Following today’s release of Wickes Q4 figures for FY2019, Matt Walton, senior retail analyst at GlobalData, a leading data and analytics company, comments: ‘‘Wickes has finished 2019 with a flourish and as the clear winner within the consumer DIY market as it prepares to demerge from the Travis Perkins group. While growth slowed this quarter compared to the rest of 2019, Q4 remains a resilient performance given the weak consumer confidence in the run-up to the Halloween Brexit deadline and subsequent general election.

“The 4.2% uplift through Core DIY in Q4 outpaced the 1.7% increase in Do-it-for-me, its major projects sector which includes kitchen and bathroom design and installation, as it went up against a strong showroom comparative. This is the inverse for 2019 overall where the 12.8% growth through Do-it-for-me was more than double that of Core DIY as it maintained the momentum in terms of kitchen orders from Q4 2018 and benefitted from B&Q ceasing its Homefit installation service in June 2018.  

“Wickes’ proactive approach to adjusting its offer to the market has helped it outperform the DIY market and will stand it in good stead once it leaves the Travis Perkins group. It was one of the first DIY retailers to embrace online and click & collect while also pruning unproductive space. With both B&Q and Homebase attempting to turn themselves around, Wickes can focus more on developing its own offer. Consumer confidence will remain fragile as our future trading relationship with the EU is being negotiated but Wickes’ focus on its multi-channel offer and its ability to remain competitive on price mean it is well placed to continue outperforming the market.”