Travis Perkins will be closing 165 stores and cutting 2,500 jobs amid the Coronavirus pandemic.
The building materials group announced the decision, putting the closures and job cuts down to an expected weaker demand over the next two years.
“While we have experienced improving trends more recently, we do not expect a return to pre-Covid trading conditions for some time and consequently we have had to take the very difficult decision to begin consultations on the closure of selected branches and to reduce our workforce to ensure we can protect the group as a whole,” said Nick Roberts, the group’s chief executive.
“This is in no way a reflection on those employees impacted and we will do everything we can to support them during this process.”
“The group has a robust balance sheet, strong liquidity position and I am confident that these proposed changes will enable us to trade successfully through this period of uncertainty with a cost base that better reflects the environment we are operating in,” he added.
Travis Perkins said in a statement: “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.”
The group has 2,154 branches around the country and owns brands including Wickes and Toolstation. Most of the stores that will be affected will be smaller shops – where profit margins are thin and social distancing measures are hard to ensure.
From Monday, non-essential shops are opening across the UK following the three-month shutdown.
During the course of lockdown, the group kept a third of its branches open. More branches have opened over the last month, with sales about 60% down across the month of May. However, sales have picked up since the end of lockdown.
Shares in Travis Perkins (LON: TPK) are trading down almost 3% at 1,049.00 (1355GMT).
