Wickes sales fall on IT disruption and pressures on consumer spending

It said trading in the arm was knocked by issues with a switch to new customer order software, which will continue into the fourth quarter, meaning that full-year sales in the division will now be lower.

The company said that it was taking actions to solve these issues.

The news comes on top of a pull back in spending on home renovation projects since the pandemic and as the cost crisis has impacted demand.

The 230-strong chain said customers were “taking longer to commit” to so-called big ticket purchases, with this particularly being seen in September.

But the firm’s core DIY materials and builders’ merchant business was more resilient, with sales up 1.1 per cent in the three months to September 30.

The firm also delivered a return to sales by volume for the first time since the second quarter of 2021.

Wickes said that its core market share had improved in the third quarter of the year, with particularly strong performances in decorative, tiling and insulation.

David Wood, chief executive of Wickes, said: “In our core business we have gained further market share and achieved a return to volume growth.

“We have fulfilled strong demand from our trade customers and been encouraged by greater stability in DIY.”

Mr Wood described the firm’s results as a “solid performance” in a challenging economic market.

The group said it remained on track with full year City expectations for full-year underlying pre-tax profits of between £45.3million to £49 million.

Shares in the firm lifted 3 per cent in Friday morning trading following the company’s announcement to the London Stock Exchange.

During the third quarter of the year, Wickes completed one store refit and opened a new store in Chelmsford.

In the fourth quarter, the firm has already opened two new stores, one in Widnes in mid-October and one in Torquay this week. The company also has plans for a further four refits in this quarter.

The firm has also been named as one of the companies to take a space at the Fieldon Bridge Retail Park, in Bishop Auckland, which is currently under construction.

Wickes added that it remains confident regarding the pipeline for new stores in 2024.

Speaking on the new stores, Mr Wood added: “As we continue to rollout our programme of store openings and refits, I am confident that we have the right product offer and the most attractive locations - enabling us to deliver value for customers and shareholders.”

Back in July, Wickes announced that it would return £25 million to investors through share buybacks as it cheered signs of a recovery in under-pressure DIY sales.