An interim management statement from Travis Perkins reports that total turnover in its merchanting division was up 11.1% in the four months to 30 April. With two fewer trading days in the first quarter of 2011 than 2010, this represents an increase of 12.8% per trading day. General merchanting total turnover was up 10.5%, with like-for-like turnover per trading day up 12.5%. The company’s specialist merchanting business saw total turnover increase 12.0% with like-for-like turnover per trading day up by 13.4%.
While trade sales saw strong growth, there has been a more modest rise at the DIY chain Wickes, where turnover for the quarter was up 3.1% with like-for-like delivered sales up by 1.9%. Kitchen and bathroom sales were down 12.0%, reflecting weakening consumer confidence for major purchases, the company said.
Chief executive Geoff Cooper attributed the strong growth at the start of the year to demand having been pent up by snowfall in the previous quarter. He said: "After strong early progress against weak weather related comparatives, we are pleased with the overall progress the Group has made in the first four months of this year. Current trading is in line with management expectations with the benefit of strong sales performance balancing a slightly lower gross margin in merchanting.
“We continue to take market share against a tough market backdrop, confirming the sustainable strength of our organic growth strategy. Our more positive merchanting and BSS performance is more than balancing the effect of a challenging consumer environment for our retail business.”
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