Topps Tiles shutting 23 stores as part of cost-cutting measures

Retailer Topps Tiles has announced 23 stores are being closed in the face of a tougher home improvement market and rising costs.

The Leicestershire-based tile chain said the closures, 7% of its 319-strong estate, will help slash costs as part of “significant self-help measures”, which also include savings being made at its head office.

Topps said the stores are under-performing, with eight already closed since last September and the remainder being shut over the next six months.

It did not disclose what impact the moves would have on its workforce or how much it is targeting for cost savings, but said it would offer affected staff jobs elsewhere within the business where possible.

The group currently employs around 1,850 workers.

Topps Tiles chief executive Alex Jensen said: “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.

“These actions are designed to support year on year profit growth and provide a stronger financial platform for 2027 and beyond.”

The group said sales fell 0.1% to £142.7 million in the six months to March 28, though it said revenues were impacted by a “lengthy” competition process and disposal programme required to appease competition concerns after it bought CTD out of administration in 2024.

With the CTD business stripped out, sales rose 2.1%, though it said growth slowed sharply to 0.6% in the second quarter.

It said it performed better than the wider DIY and home improvement market, though shares still fell 3% after the update.

The cost savings efforts are set to impact sales, but boost profitability, the group said.

Ms Jensen took over as chief executive on December 8 after former longstanding boss Rob Parker retired.

Topps saw its deal to buy CTD out of administration probed by the Competition and Markets Authority (CMA), which required it to sell off a number of CTD stores to appease concerns.

The firm was left with 22 CTD stores, down from an initial 31.

In December, it also bought the brand of collapsed rival Fired Earth in a £3 million rescue deal after the Oxfordshire-based competitor tumbled into administration in October, resulting in the closure of its 20 UK showrooms and 133 job cuts.

Topps said the group is on track to return the CTD arm to profit in 2025-26, having notched up like-for-like sales growth of 1% across the division in the first half to March 28.

The firm reported a statutory pre-tax profit of £8.3 million in the year to September, swinging from a £16.2 million pre-tax loss a year earlier.

It will report half-year figures on May 19.