Operating under a service-light, non-contact model, Travis Perkins has been opening more of its merchant network through the latter part of April (from 20 April), providing greater support for large construction firms and subcontractors as they restart construction sites – as well as smaller local traders.
A third of merchanting branches were operating in the early weeks of the lockdown, supplying essential construction programmes including the NHS Nightingale hospital network.
Front line branch teams and those in support functions were furloughed – including around 30,000 staff in the first three weeks of lockdown. Furloughed staff were on full pay, while the board and group leadership team voluntarily reduced their salaries by 20% for three months, effective 1 May.
Wickes and Toolstation branches – also owned by the group – have been operating as fulfilment centres for online transactions for collection within a specific time slot or direct delivery. Services like Wickes Kitchen & Bathroom design and installation (which usually contributes a third of Wickes sales) remain closed.
Due to the unusual trading circumstances, the first three weeks of April saw group revenue at one third of the same period in 2019. Thanks to more merchanting branches opening and an increase in sales volumes in Wickes and Toolstation, the group expects its cash outflow (£50m in the first month of lockdown) to reduce.
The group is benefiting from a business rates holiday, saving around £90m on an annualised basis.
“In light of the COVID-19 emergency, we have established a new operating model that has kept colleagues and customers safe, operating within Government guidelines, and enabling branches across all of the Group’s businesses to remain open,” said Nick Roberts, Chief Executive. “Moreover, we have provided essential services and support to keep the nation’s critical infrastructure maintained and operational and the UK’s homes warm, dry and safe during this time of need.
“We continue to adapt our operations, applying stringent social distancing and using technology to enable contactless operations, and we are therefore able to respond to the Government’s call to ensure that the construction industry can continue to deliver on crucial programmes and projects and be an engine for future economic recovery.
“As we move forward we will continue to adjust our operations, with our foremost priority to keep colleagues and customers safe and the industry supplied with the materials it needs.”
Also in the UK, DIY and hardware stores Homebase and B&Q are reopening stores during the lockdown, with new safety measures in place. More EU countries are allowing hardware stores to open during their respective lockdowns, including Austria and the Czech Republic.