Topps Tiles Announces Major Store Closures and Cost-Cutting Measures
In a significant restructuring move, tile retailer Topps Tiles has revealed plans to close 23 of its stores across the United Kingdom. The Leicestershire-based company stated that these closures are part of a broader cost-cutting strategy designed to address challenging market conditions and rising operational expenses.
Details of the Store Closure Programme
The 23 stores set for closure represent approximately 7% of Topps Tiles' total portfolio of 319 locations. According to the company, eight of these stores have already been shuttered since September of last year, with the remaining 15 scheduled to close over the next six months. Topps Tiles described these locations as "underperforming" and indicated that the closures are a key component of what it calls "significant self-help measures."
The company has not disclosed specific cost-saving targets or the exact impact on its workforce of approximately 1,850 employees. However, it confirmed that affected staff members will be offered positions elsewhere within the business where feasible, aiming to minimize job losses through internal redeployment.
Leadership and Market Challenges
Alex Jensen, who assumed the role of chief executive on December 8 following the retirement of longtime former boss Rob Parker, commented on the decision. "In light of subdued consumer sentiment and geopolitical uncertainty as well as the cumulative impact of cost inflation, the management team is implementing a targeted programme of self-help measures weighted towards the second half," Jensen stated.
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 ongoing cost-cutting measures are expected to weigh on sales in the short term while strengthening profitability over the longer period.
Financial Performance and Recent Acquisitions
Topps Tiles reported that sales declined by 0.1% to £142.7 million in the six months ending March 28. The company noted that revenues were affected by a lengthy competition process and disposal programme required to address concerns following its acquisition of CTD from administration in 2024. Excluding the CTD business, sales actually climbed by 2.1%, although growth decelerated sharply to 0.6% in the second quarter.
The group said it outperformed the broader DIY and home improvement market, yet its shares still slipped by 3% following the announcement of the store closures and restructuring plans.
Topps Tiles' acquisition of CTD out of administration came under scrutiny from the Competition and Markets Authority (CMA), which ordered the company to divest a number of CTD stores to address competition concerns. The retailer retained 22 CTD stores, reduced from an initial 31.
In a separate development, the company acquired the brand of collapsed rival Fired Earth in a £3 million rescue deal in December. This followed Fired Earth's administration in October, which led to the closure of its 20 UK showrooms and 133 redundancies.
Future Outlook and Profitability Goals
Despite the current challenges, Topps Tiles confirmed that it remains on course to return the CTD arm to profitability in the 2025-26 financial year. The CTD division recorded like-for-like sales growth of 1% in the first half to March 28.
The company posted a statutory pre-tax profit of £8.3 million in the year to September, marking a significant turnaround from a £16.2 million pre-tax loss the previous year. Half-year financial figures are scheduled to be published on May 19, providing further insight into the impact of these restructuring measures.
As Topps Tiles implements these cost-cutting plans, including both store closures and head office savings, the company aims to navigate the difficult retail environment while positioning itself for sustainable growth in the coming years.
