Wickes, the FTSE 250 home improvement retailer, has seen its revenue increase by 2.1 per cent to £865m in the six months to June. This growth is attributed to a shift in consumer spending towards more affordable options, according to the company's chief executive, David Wood.
Wood stated that Wickes is attracting more customers and transactions, despite fragile consumer confidence and a slowdown in demand for new homes. Customers are reportedly choosing more affordable cabinets while still opting for premium ovens, microwaves, and work surfaces.
The average order value is lower than in previous years, indicating that customers are making more considered purchases. However, Wood noted that consumers are not halting home refurbishments entirely, with the company winning a larger share of the market for kitchens and bathrooms.
Wickes posted a pre-tax profit of £24.6m for the six-month period, which remained broadly flat compared to the previous year. The group also increased its dividend by 2.8 per cent to 3.7p per share. Shares in Wickes rose by 6.8 per cent in early trading to 188.6p.
Julie Palmer, managing director at real estate advisory BTG, suggested that the slowdown in the housing market could benefit Wickes. She noted that people may choose to improve their existing homes rather than moving, due to high borrowing costs, stamp duty, and prevailing uncertainty.