Careers Shop Wickes
A message from our CEO

Wickes is a successful, growing, cash generating and profitable home improvement business with a rich 165+ year history. The strength of our unique proposition, digital capability and efficient operating model means we are well placed to capitalise on our exciting growth opportunities while creating long-term value for all our stakeholders.

David Wood, Chief Executive
A compelling investment case

Our business has a compelling investment case centred around five key areas.

Distinctive and hard to replicate customer proposition

  • Understanding the customer is at the heart of everything we do:
    • For Local Trade we save them time and save them money with a simple scheme -Trade Pro – 10% of anytime with no minimum order value
    • For DIFM we inspire, offer advice, are one partner to manage their project end to end and provide a quality installation with guarantee
    • For DIY we offer simplicity, value and convenience
  • Our best in class service for DIFM customers has not come overnight – it’s taken years to refine and develop and is now repeatable, successful and importantly trainable with new members of our team.

Uniquely balanced business

  • Revenues are split evenly between three customer segments – Local Trade, Do-it-for-me and DIY retail. This provides not only greater resilience to customer trends, but importantly greater exposure to the growth sectors of Local Trade and DIFM
  • As a result, we do not face any specific competitors, but a wider competitive set with a large market to go after

Low cost and efficient operating model

  • All three customer routes of Local Trade, DIFM and DIY Retail are underpinned by the same products driving operational efficiency
  • We have a right sized store estate
  • Our stores hold an average 9500 lines so we can swiftly flex to fulfil greater choice for customers with a broader range online and through our online instore service (OLI)
  • Our stores underpin the digital journey as 95% of our sales touch the store

Proven levers for growth

  • Whilst the Home Improvement has been growing at a sales CAGR of 2.5%* we have been growing ahead of that, and have plans to continue to grow and take share from our key growth drivers which include:
    • Digital capability – continued development of a seamless offer
    • Winning for Trade – TradePro growth
    • Accelerating DIFM – natural growth extensions
    • DIY Category wins – getting out fair share in underweight categories
    • Store Refits – High ROCE refreshes
    • Enhanced store model – laying the foundations for future growth
  • We ensure growth is delivered responsibly. The responsibility to back our people, to support the communities we serve and to minimise our impact on the environment.

Strong cash generation and capacity for shareholder returns

  • Wickes is a well-invested business with stores in most major catchments
  • With growth likely to come from digital, capex is unlikely to exceed depreciation for the foreseeable future
  • Stockturn is roughly in line with the payment cycle, so the business is working capital neutral
  • As a result, cash inflows broadly match post-tax profit
  • Dividends and demerger costs are likely to absorb cash flows for the first couple of years
Our markets

Wickes operates in a large and growing market, but we pay close attention to changes in customer behaviour

Sources: Company accounts, AMA Research 2020, Global Data 2019, Mintel 2020 - Jan 2021 update

Market growth is underpinned by robust fundamentals:

Ageing housing stock

drives need for home improvement

Property transactions

drives higher value projects and boosted by stamp duty incentive

Market growth

despite lower consumer confidence

High savings rate

indicates significant pent-up consumer demand

We anticipate the market to grow ahead of recent CAGR

Sources: Company accounts, AMA Research 2020, Global Data 2019, Mintel 2020 - Jan 2021 update

Changing consumer trends define the need for change

Convenience / speed

Value / quality

Digital growth

Desire for better homes

Customer needs change and we must move with pace and adjust to meet those needs.

DIGITALLY DRIVEN BUSINESS

We have a digitally-led approach to sales with 98% of sales touching the store

DIFM Space to dream and visualise your project with expert help at hand
Assisted selling Support to find exactly what you need
Order fulfilment Orders picked and ready for collection or delivery
Self service Simple, quick and easy to shop

Approaching ⅔ of customers starting their journey digitally as they demand more digitally-led propositions

Convenience
Certainty
Value
Help and advice
Delivery

Digitally-led proposition drives efficiency and sales density across the physical store network

Strong plans to drive growth throughout our framework

1 Winning for the Trade - TradePro Growth
2 Accelerating DIFM - Natural growth extensions
3 Distinctive service model providing inspiration, service and fulfilment
4 DIY Category Wins - Getting our fair share in underweight categories
5 Store refits and enhanced store service model