Wickes achieves record sales amid higher demand for energy efficiency products

Wickes achieved record turnover last year as soaring energy bills drove up orders of energy-saving products.

The DIY retailer’s revenues increased by 1.8 per cent to £1.56billion in 2022, while its core business achieved further market share gains despite much stronger comparatives.

DIY and trade sales improved significantly during the year as skyrocketing gas and electricity prices encouraged more Britons to snap up goods like insulation, lighting, draught excluders and smart meters.

Results: Wickes revealed its revenue increased by 1.8 per cent to £1.56billion in 2022

Like-for-like core revenues still fell marginally due predominantly to rising interest rates and cost-of-living pressures dampening the volume of property purchases and home renovations.

But this was offset by soaring demand in its ‘Do It For Me’ (DIFM) fitting services arm, which had been badly impacted during the winter before last by the Omicron variant’s emergence.

The relaxation of coronavirus-related curbs enabled installation teams to work through its large DIFM order pipeline and complete some delayed projects.

Yet the Watford-based group’s profits plummeted by 46 per cent to £31.9million owing to the costs of detaching IT infrastructure from its former parent company Travis Perkins.

Wickes’ results follow those of B&Q-owner Kingfisher, which also revealed a profit slump as a result of weaker demand among homeowners to refurbish their properties.

Before last year, Britain’s DIY sector had experienced a roaring trade for much of the pandemic as lockdowns forced Britons to spend more time indoors.

Demand was additionally spurred by cheap mortgages, a temporary stamp duty holiday, the build-up of excess savings by Britons, and a growing desire to live in more spacious premises.

Though sales have slackened amid a tougher economic backdrop, Wickes said certain structural factors meant the residential improvement industry remained ‘a large and attractive market.’

The rise of hybrid working means people are still spending large amounts of time at home while soaring energy prices have heightened awareness of the necessity to upgrade the UK’s old and draughty housing stock.

Chief executive David Wood said: ‘Like all businesses, we remain watchful of the external consumer environment.

‘However, we have the right strategy and a compelling offer for customers and look to the future with confidence. 

‘We will continue to invest across our distinctive growth levers and are well-placed to achieve further market share gains.’

For the first 11 weeks of this year, Wickes said core sales were ‘moderately behind’ the equivalent period in 2022, but DIFM delivered orders were higher thanks to the bumper order book. 

But Russ Mould, investment director at AJ Bell, warned that the current economic difficulties would make people more reluctant to spend money on refurbishing properties.

He said: ‘People’s budgets are less likely to stretch to home renovation projects which are becoming less affordable…plus a slowdown in the housing market will diminish one of the key drivers for do-it-yourself and do-it-for-me business.’

Wickes Group shares were 1.4 per cent lower at 143p on late Thursday morning, around 46 per cent below its 263p debut price in April 2021 following the demerger from Travis Perkins.

This post first appeared on Dailymail.co.uk