Topps Tiles is closing 23 stores as part of a cost-cutting programme aimed at shoring up profitability amid weak consumer demand and rising operating costs. The Leicestershire-headquartered retailer said the closures represent around 7% of its 319-strong store portfolio, with eight already shut since last September and the remaining sites expected to follow over the next six months.
The company has not disclosed specific savings targets or confirmed how many jobs will be affected, though it said it will try to offer alternative roles within the business to staff at closing branches where possible. Topps currently employs around 1,850 people. Head office changes are also in the works as part of the same programme.
Half-year results to 28 March showed sales essentially flat, declining just 0.1% to £142.7 million. That headline figure was dragged down by complications arising from last year’s acquisition of CTD out of administration, which required a lengthy Competition and Markets Authority review and the disposal of a number of stores to address competition concerns. Stripping out the CTD business, underlying sales rose 2.1%, though the pace of growth slowed sharply to 0.6% in the second quarter. Shares fell around 3% on the update.
CEO Alex Jensen, who took the role in December following the retirement of longstanding boss Rob Parker, framed the cost-cutting programme as a foundation for stronger performance in 2027 and beyond, rather than a purely defensive move. The closures are expected to weigh on sales in the near term while improving the overall profitability of the store estate.
The CTD integration continues to progress. Topps retained 22 CTD stores following the CMA process, reduced from an initial 31, and says the division is on course to reach profitability in the 2025-26 financial year, with like-for-like sales growth of 1% in the first half. In December, Topps also picked up the Fired Earth brand for £3 million after that rival fell into administration, closing its 20 showrooms and leaving 133 people redundant.
For the full year to September, Topps posted a statutory pre-tax profit of £8.3 million, reversing a £16.2 million loss in the prior year. Half-year figures are due to be published on 19 May.