As part of a trading and liquidity update published on the Travis Perkins corporate website, the Group has announced a restructuring of its business in response to the effects of the COVID-19 pandemic.
Travis Perkins has unveiled plans to close around 165 branches, blaming forecast falls in demand for general supplies.
The closure programme will see 2,500 jobs cuts from both the builders’ merchants’ branches and roles in the distribution, administrative and sales functions, amounting to 9% of the total workforce.
Branch closures will be concentrated in the Travis Perkins General Merchant business, focusing on small branches where it is either difficult to implement safe distancing practices, or where marginal profitability will be eroded by reduced trading volumes.
Part of the trading and liquidity update was some information on how the business is dealing with lockdown: “Over the last six weeks, the Group has continued to open more of its branches under the safe, social-distancing working practices we have developed in conjunction with customers, suppliers and construction industry bodies, as well as the UK government.
“Across the merchanting and plumbing and heating businesses, volumes are now around 80% of the prior year with more marked differences between the businesses depending on the customer category mix and also with some regional variations.”
Nick Roberts, chief executive, said while there had been a significant recovery in trading volumes in recent weeks, it was evident that the UK faced a recession that would impact on the demand for building materials during 2020 and 2021.
He said: “Whilst we have experienced improving trends more recently, we do not expect a return to pre-COVID trading conditions for some time, and consequently we have had to take the very difficult decision to begin consultations on the closure of selected branches and to reduce our workforce to ensure we can protect the Group as a whole.
“This is in no way a reflection on those employees impacted and we will do everything we can to support them during this process.”
Nick added: “The Group has a robust balance sheet, strong liquidity position and I am confident that these proposed changes will enable us to trade successfully through this period of uncertainty with a cost base that better reflects the environment we are operating in.”
