The UK’s largest constructing supplies group has introduced plans to chop 2,500 jobs because the coronavirus disaster takes its toll on demand.
Travis Perkins, which has greater than 20 companies together with the Wickes DIY chain, mentioned it anticipated the looming COVID-19 recession to dent its enterprise not solely this 12 months but additionally subsequent.
The corporate mentioned it deliberate 165 department closures – about 8% of its complete community – concentrated in its Travis Perkins Basic Service provider division.
It mentioned shops probably to be affected have been small branches the place it was both tough to implement secure social distancing practices or the place revenue margins have been already skinny.
The corporate mentioned that along with the shop closures, it had additionally began a session course of on roles inside its distribution, administrative and gross sales capabilities.
It introduced the losses whereas revealing a 40% plunge in gross sales volumes throughout Could in comparison with the identical month final 12 months however reported a choose up as extra branches have reopened following the lockdown.
It mentioned there had been notably sturdy demand at its Wickes shops and at Toolstation, with each companies exhibiting bettering like-for-like gross sales development towards 2019.
Chief govt Nick Roberts mentioned: “While we’ve got skilled bettering tendencies extra not too long ago, we don’t anticipate a return to pre-COVID buying and selling circumstances for a while and consequently we’ve got needed to take the very tough choice to start consultations on the closure of chosen branches and to scale back our workforce to make sure we are able to shield the group as an entire.
“That is by no means a mirrored image on these staff impacted and we’ll do every little thing we are able to to help them throughout this course of.
“The group has a strong steadiness sheet, sturdy liquidity place and I’m assured that these proposed modifications will allow us to commerce efficiently by this era of uncertainty with a value base that higher displays the atmosphere we’re working in.”