March 17 (Reuters) - British building materials supplier Travis Perkins said on Tuesday that the trading environment since the start of 2026 has remained subdued amid a weak construction market, after
UK's Wickes thrives on home upgrades, while Travis Perkins battles building slump
Contrasting Fortunes in the UK Home Improvement and Construction Sectors
By Raechel Thankam Job
March 17 (Reuters) - British retailer Wickes posted annual profits that beat expectations as it gained record market share in the home-improvement business while former parent Travis Perkins suffered an earnings slump on prolonged weakness in construction.
The contrasting fortunes, five years after Wickes' demerger, highlight the differences between the relatively resilient home-improvement sector and the construction market as higher borrowing costs and economic uncertainty weigh on home purchases and new building activity.
Wickes Outperforms Expectations
Record Profits and Expansion Plans
Wickes reported on Tuesday adjusted profit before tax of 49.9 million pounds ($67 million) for 2025, ahead of market expectations, and said it would accelerate plans to expand its store network to 300 outlets from 230.
Market Share Gains Driven by Home Upgrades
The retailer gained record market share as more customers undertook smaller home upgrades such as decorating and refurbishments.
Travis Perkins Faces Challenges
Profit Decline Amid Construction Weakness
Meanwhile, building-material supplier Travis Perkins reported a 12.5% fall in annual adjusted operating profit as weak housing and construction activity hit demand.
Outlook and Strategic Focus
Wickes expects 2026 profits to grow while Travis Perkins flagged a subdued start to trading as it focuses on improving its customer proposition.
Strategies for Market Share and Margin Protection
Wickes: Strength in Trade and DIY Segments
Tradespeople and DIY Customer Trends
Wickes CEO David Wood told Reuters that local tradespeople serving existing homeowners remained "very busy" with work pipelines exceeding 12 months, while "one in two DIY customers plan to decorate a room this year".
Category Performance
The company achieved record retail market share with particular strength in timber, tiling and flooring and paint, helped more by higher volumes than pricing.
Travis Perkins: Pricing and Cost Management
Approach to Winning Back Market Share
Travis Perkins, which was "aggressive on the prices" to win back market share, particularly for plasterboard, insulation and bricks, said it would take a more "nuanced" approach in 2026 to protect margins, as costs remained elevated.
Cost Pressures and Manufacturer Surcharges
"We've started to see communications coming in from manufacturers talking about energy surcharges, talking about surcharges on transportation," newly appointed CEO Gavin Slark told analysts.
($1 = 0.7502 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich and Emelia Sithole-Matarise)
