Wickes gains as Brits go budget in kitchen refurbs

Wickes, a value home improvement retailer, is experiencing growth as British consumers shift towards more affordable options, according to the company's CEO, David Wood. The FTSE 250 group reported a 2.1% increase in revenue to £865 million in the six months leading up to June, driven by a surge in sales of high-ticket items such as bathrooms and kitchens. Despite fragile consumer confidence and a slowdown in demand for new homes, Wickes is attracting more customers and transactions.

Wood noted that customers are opting for more affordable cabinets while still purchasing premium items like ovens, microwaves, and work surfaces. He explained that the average order value has decreased due to customers cutting costs accordingly. Despite the housing slowdown, Wickes is not heavily reliant on new-build homes for its sales, as the company is not exposed to the new-build housing market where existing kitchens and bathrooms are already installed.

Julie Palmer, managing director at real estate advisory BTG, attributed the slowdown in home-moving to the increased demand for DIY and home improvements. She suggested that as borrowing costs and stamp duty remain high, and uncertainty prevails, more people are choosing to renovate their existing homes rather than buying new ones. Shares in Wickes rose by 6.8% in early trading, reaching 188.6p.