Topps Tiles warns of deteriorating sales

Topps Tiles, the UK’s largest retailer of tiles and floor coverings, is cutting staff bonuses and employee hours to reduce its costs as it battles against sliding sales.

The group, which employs 1,700 staff across 322 stores, is targeting £2 million in savings by the end of September.

A spokeswoman said the steps include cutting performance incentives for staff and the number of hours worked, as well as reducing head office costs.

Pre-tax profits fell to £4.7m in the six months to 30 March, from £5m a year earlier, and chief executive Matthew Williams said trading had deteriorated in recent weeks.

Like-for-like sales in the eight weeks to 25 May fell by 2.6 per cent, against a 3.2 per cent rise a year ago, and Williams said: “We continue to be cautious on the like-for-like sales outlook for the remainder of the current year.”