Wickes has revealed ambitious expansion plans that will see the DIY retailer grow its network to 300 stores across the UK, generating more than 2,000 new positions.
The home improvement chain, which presently operates 230 outlets, shared the announcement alongside annual financial results that demonstrated a robust performance.
Underlying pre-tax profits climbed 14.4 per cent to reach £49.9million for the year ending December 27, while revenue increased by 5.9 per cent, helping to counterbalance mounting cost pressures.
Statutory pre-tax profits saw an even more dramatic improvement, more than doubling to £48.7million compared with £23.2million in the prior year.
Investors responded positively to the news, with the company’s share price gaining four per cent during Tuesday morning trading.
The retailer intends to launch between four and five new stores during the current year, before significantly ramping up its expansion programme to a minimum of 10 openings annually from 2028.
Alongside new locations, Wickes plans to refresh existing sites, targeting 15 to 20 stores this year and at least 20 per annum from 2028 onwards.
During the previous financial year, the company added five new stores to its portfolio, with four of these being former Homebase premises, though it also shuttered three locations.
Fourth quarter like-for-like sales growth eased to 4.7 per cent, marking the slowest pace since early last year and down from 5.9 per cent in the preceding quarter.
The retailer intends to launch between four and five new stores during the current year
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The opening weeks of the new financial year have seen wet weather dampen demand for outdoor DIY products, though indoor projects and the design and installation division continued to record volume gains.
David Wood, chief executive of Wickes, expressed confidence in the company’s growth trajectory. “Given the strength of investment returns from our proven store refit and new store rollout strategy, we have today announced the decision to accelerate our investment for future growth,” he said.
“This takes our ambition to reach 300 stores nationwide creating over 2,000 new jobs as we bring Wickes’ distinctive offer to new locations up and down the UK.”
The company stated it remains on course to meet full-year forecasts, with underlying pre-tax profits expected to reach £57.6million in 2026.
Wickes plans to refresh existing sites, targeting 15 to 20 stores this year and at least 20 per annum from 2028 onwards.
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PA
Wickes also unveiled a £10million share buyback programme.
The retailer acknowledged the challenging trading environment, noting that “continued investment in our proven growth levers positions us well for 2026, notwithstanding the uncertain consumer and geopolitical environment.”
Dan Coatsworth, head of markets at AJ Bell, said: “To beat profit forecasts when the going is good is one thing, to do it when market conditions are more volatile is another, which suggests Wickes has sharpened its proposition.
“Shareholders will be encouraged to see accelerated investment in the business – with management clearly not resting on their laurels. Whether you’re selling scarves or shelving – the basics of retail involve getting the right products in the right places at the right time and at the right price points to encourage customers to buy. Wickes seems to be winning.”
The Wickes expansion comes as the Government pursues its own major employment initiative aimed at tackling youth unemployment.
Ministers have committed £1billion to create 200,000 jobs for young people, representing the most significant overhaul of apprenticeships in a decade.
The number of young people neither in work nor education rose by 248,000 between 2021 and 2024, with apprenticeship starts among this age group falling 40 per cent over the past decade.
Prime Minister Sir Keir Starmer said: “Backing young people is one of the most important investments we can make in this country’s future.”
Work and Pensions Secretary Pat McFadden added: “These measures will give life-changing opportunities to young people and significantly reverse the increase we inherited in those not in education, employment or training.”