Wickes sets sights on growing market share as ‘challenging’ market conditions spell trouble for rivals
Retailer Wickes has said that it now has the opportunity to grow its market share in the roughly £27bn home improvement market, after challenging trading conditions led to the collapse or restructuring of a number of its rivals.
The company, which holds a roughly six per cent market share, said that it now has a “significant opportunity” for long-term growth.
It came as the firm announced that its retail market share had reached record levels.
A statement from Wickes said: “The challenging trading conditions of the last two years have resulted in the exit and/or restructuring of retailers such as Homebase, Carpetright, CTD Tiles and Wilko, presenting an opportunity for strong businesses of scale, such as Wickes.
“The market has grown at around 2.5 per cent per annum on average over the past ten years, driven by the high average age of the UK's housing stock, the rising number of UK households and increasing home ownership.
“There are a number of macroeconomic trends which affect our market. Whilst the Wickes home improver customer base has not been immune from cost of living pressures (such as increased mortgage rates or rents), they tend to be slightly older and more affluent than the UK average.”
Wickes also cited a growing specialist DIY market as a potential growth opportunity.
According to Mintel, specialist DIY sales are forecast to grow by 2.6 per cent per annum between 2025 and 2030, driven by improved confidence and expected improvement in the housing market.
The firm’s statement came as it posted a lift in profits for the first half of the year.
Wickes posted statutory pre-tax profit of £24.4m for the six months ending 28 June, up from £22.9m in the same period last year.
The figure came alongside revenue of £847.9m, a 5.6 per cent lift from £803.2m last year.
David Wood, chief executive of Wickes, commented: "Wickes has delivered a strong first half, with volume growth across the group.
"In retail, we have achieved record market share growth and have prioritised convenience, choice and speed, helping grow TradePro sales by a further 10 per cent.
"Our proven strategy is working. Whilst we remain mindful of the cost headwinds facing the sector as a whole, continued investment in our growth levers and digital initiatives means we are well positioned for the future and remain comfortable with market expectations for the full year".