2500 Jobs and 165 Branches to Go at Travis Perkins

TRAVIS PERKINS has announced it is axeing 2,500 jobs – around 9% of its workforce – in the coming weeks.

The Group is also starting a consultation process to close around 165 branches – about 8% of the total – as well on above-branch roles in the distribution, administrative and sales functions.

Branch closures will be concentrated in the Travis Perkins General Merchant businesses, focusing on small branches where it is either difficult to implement safe distancing practices, or the measures make the branch unprofitable.

Travis Perkins trading update

The news comes as Travis Perkins reports its latest trading update.

The Group reported that sales volumes in May were around 60% of last year’s and weekly sales are now around 85-90% of 2019’s. The company reports particular strength in Wickes’ core DIY ranges and in Toolstation where sales are up on 2019, with growth particularly in online sales.

Across the Merchanting and Plumbing & Heating businesses, volumes are now around 80% of last year with bigger differences between the businesses depending on the customer category mix and also with some regional variations.

Travis Perkins says the General Merchanting business is operating well, whereas trading in Plumbing & Heating is recovering more slowly as a greater proportion of plumbing work requires tradesmen to work in people’s homes.

Facing a recession

Despite its promising sales during the early post-lockdown period, the company says, “while there has been a significant recovery in trading volumes in recent weeks, it is evident that the UK is facing a recession and this will have a corresponding impact on the demand for building materials during 2020 and 2021.

“Reflecting the challenging outlook for our end-markets, the Group is taking regrettable but necessary actions to preserve the future competitiveness of the business.”

The Group reports cash deposits of £363m, and an overall liquidity of £763m. It has decided to publish its interim results in early September.