Topps Tiles, a Leicestershire-based chain with around 300 stores in Britain, is implementing these closures as part of broader restructuring. Eight stores have already been shut since September, with the remainder to be closed over the next six months. The company has not specified which specific 23 branches are being closed or the exact timeline for the remaining closures over the next six months, nor has it detailed the total number of job losses expected. According to chief executive Alex Jensen, the management team is implementing a targeted programme of self-help measures weighted towards the second half in light of subdued customer sentiment and geopolitical uncertainty as well as the cumulative impact of cost inflation. He added that these actions are designed to support year-on-year profit growth and provide a stronger financial platform for 2027 and beyond. The cost-saving efforts are expected to impact sales but boost overall profitability, though the specific measures beyond store closures have not been disclosed.
Financially, the group's sales fell 0.1% to £142.7 million in the six months to March 28, with growth slowing sharply to 0.6% in the second quarter. Despite this, Topps Tiles performed better than the wider DIY and home improvement market. Revenues were impacted by a 'lengthy' competition process and disposal programme to ease competition concerns after it brought CTD Tiles out of administration in 2024. Sales rose 2.1% after CTD was stripped out, indicating underlying challenges in integrating the acquisition.
The acquisition of CTD Tiles has been a significant factor in the company's recent performance. Topps Tiles' deal to buy CTD out of administration was probed by the Competition and Markets Authority (CMA), leading to a reduction in store count. The company was left with 22 CTD stores, down from an initial 31. Topps Tiles said the group is on track to return the CTD arm to profit in 2025/26, with the CTD division notching up like-for-like sales growth of 1% across the division in the first half to March 28. This acquisition, however, has contributed to competitive pressures and necessitated the current restructuring.
Leadership changes have accompanied these strategic shifts. Alex Jensen took over as chief executive in December after longstanding boss Rob Parker retired, bringing a new focus on profitability and cost management. The company's initiatives aim to stabilize operations amid economic headwinds, though the impact on the retailer's workforce remains unclear as job loss details are not yet public.
Recent acquisitions have further shaped the competitive landscape. In December, Topps Tiles bought the brand of collapsed rival Fired Earth in a £3 million rescue deal after the Oxfordshire-based competitor tumbled into administration in October. Fired Earth's administration resulted in the closure of its 20 UK showrooms and 133 job cuts, highlighting the turbulent market conditions. These moves position Topps Tiles to consolidate its market presence, but they also underscore the challenges of navigating a sluggish economy and intense competition.