UK-based retailer Topps Tiles plans to close 23 loss-making stores during the 2026 financial year, aiming to cut costs and lift profitability as demand in home improvements softens.
The company said the closures are part of broader “self-help measures” aimed at addressing government and macro-driven cost pressures.
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The programme also targets improved efficiency across both head office and retail operations.
The company expects the closures to lower overall revenue but improve profitability through cost savings and the reallocation of sales.
These benefits are likely to be more evident in the second half of the financial year.
Topps Tiles CEO Alex Jensen said: “These actions are designed to support year-on-year (YoY) profit growth and provide a stronger financial platform for 2027 and beyond.”
At the start of FY26, Topps Tiles operated 297 stores under its core brand, alongside 22 CTD outlets.
As of 28 March 2026, the estate had fallen to 289 Topps Tiles sites. Meanwhile, the number of CTD stores remained unchanged at 22.
The remaining closures are due to be completed later in the year.
The group reported that it continued to outperform the wider Home Improvements & DIY market, which declined by around 2.5% over the same period, citing the Barclays UK Consumer Spend Report.
In its trading update for the 26 weeks ended 28 March 2026, Topps Tiles reported total group revenue of £142.7m, down 0.1% YoY.
The decline was linked to volume reductions associated with the ongoing UK Competition and Markets Authority (CMA) process affecting CTD.
The CMA had raised concerns that Topps Tiles’ acquisition of CTD Tiles outlets could reduce competition in four locations: Dorking, Edinburgh, Inverness and Aberdeen.
Excluding CTD, revenue increased by 2.1%, although growth slowed to 0.6% in the second quarter following a stronger first quarter.
Like-for-like revenue rose by 0.1% over the period.
The company expects to publish its first-half interim results on 19 May 2026.
